( CNN ) -- The European Commission found leading computer chipmaker Intel guilty Wednesday of violating European anti-trust rules and ordered that it pay a fine of 1.06 billion euros ( $ 1.45 billion ) . Intel was allowed to present a defense to the European Commission ahead of Tuesday 's ruling . It is the largest fine the commission has ever imposed , said Neelie Kroes , the European commissioner for competition . Intel has said it plans to appeal the decision . The commission found Intel abused its dominant market position in the market for computer chips known as the x86 computer processing unit ( CPU ) , Kroes said . The abuse lasted more than five years , she said . `` Those x86 chips are the engine of the car , so to say , '' Kroes said at a news conference in Brussels , Belgium . `` Your computer wo n't work without these chips . '' Intel held a 70 percent share of the market during the period of the violations , she said . `` That Intel had such a large market share is not a problem in itself , '' Kroes said . `` What is a problem is that Intel abused its dominant position . Specifically , Intel used illegal anti-competitive practices to exclude essentially its only competitor , and that reduced consumer choice -- and the whole story is about consumers . '' Intel 's actions frustrated innovation and reduced consumer welfare , Kroes said . The commission found that Intel awarded major computer manufacturers rebates on the condition that they purchase all or most of their supplies from Intel . Intel also paid Europe 's biggest computer retailer , Media Markt , to sell Intel-based PCs exclusively , the commission found . Media Markt has some 200 megastores in nine countries . The commission also found that Intel awarded payments to computer manufacturers so they would postpone or cancel the launch of products containing parts from its leading competitor , AMD . `` The commission found that these payments had the potential effect of preventing products for which there was a consumer demand from coming to the market , '' the commission said in a statement . `` Given that Intel has harmed millions and millions of European consumers by deliberately acting to keep competitors out of the market for more than five years , the size of the fine should come as no surprise , '' Kroes said . Intel was allowed to present a defense to the commission 's preliminary conclusions . But Kroes said the company `` went to great lengths '' to cover up its anti-competitive practices , resulting in a long and complex investigation . In a statement on the company Web site , Paul Otellini , Intel 's president and CEO said the company took strong exception to the ruling and planned to appeal . `` We believe the decision is wrong and ignores the reality of a highly competitive microprocessor marketplace -- characterized by constant innovation , improved product performance and lower prices , '' Otellini said . `` There has been absolutely zero harm to consumers . He added that the compnay did not believe its practices violated European law and accused the Directorate General for Competition of the Commission of ignoring or refusing to `` obtain significant evidence that contradicts the assertions in this decision . '' Otellini added that the company had never sold products below cost but had invested in innovation , manufacturing and developing leadership technology with the result that it could `` discount our products to compete in a highly competitive marketplace . '' `` Despite our strongly held views , '' Otellini concluded , `` as we go through the appeals process we plan to work with the Commission to ensure we 're in compliance with their decision . ''
European Commission conducting anti - trust investigation nearly two years ago . Commission determining that Intel abused its dominant position in the European market . Commissioner : Fine is the largest ever imposed by European Commission . NEW : Intel : CEO says it takes strong exception to the ruling , will appeal .