The EU has stated that Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years.
"Such a serious and sustained violation of the EU's antitrust rules cannot be tolerated," said the Commission.
"There is evidence that Intel had sought to conceal the conditions associated with its payments."
The EC decision requires Intel to change its business practices immediately and fines Intel a record EUR 1.06 billion (US $1.45 billion).
Dirk Meyer, president and CEO of AMD said the ruling was an important step toward establishing a truly competitive market.
"AMD has consistently been a technology innovation leader and we are looking forward to the move from a world in which Intel ruled, to one which is ruled by customers."
Tom McCoy, AMD executive vice president for legal affairs said after an exhaustive investigation, the EU came to one conclusion - Intel broke the law and consumers were hurt.
"With this ruling, the industry will benefit from an end to Intel's monopoly-inflated pricing and European consumers will enjoy greater choice, value and innovation," he said.
What do you think? Has Intel been unfair in the chip market?