The European Commission on Wednesday slapped a record fine of $1.45 billion on microprocessor mogul Intel Corp. for violation of antitrust regulations and directed it to cease issuing illegal discounts to computer firms in a move to force out rival AMD from the market.

The penalty represents the heaviest ever, outstripping 27-nation EU’s historical fine on 497 million euro penalty leveled on Microsoft in March 2004.

After an eight-year long investigation, the European Commission found that Intel hindered competition as it indulged in illegal anticompetitive practices.

The regulator said Intel offered rebates to computer makers from 2002 until 2005, if they purchase at least 95 percent of chips for PCs from Intel. And it levied “restrictive conditions on the remaining 5 percent supplied by AMD.

EU Competition Commissioner Neelie Kroes said that Intel’s conduct harmed millions of consumers by trying to keep competitors out of the market. Intel kept its market share at about 80% by giving rebates to computer makers that bought all or most of their chips from the company, the commission said.

“Such a serious and sustained violation of the EU’s antitrust rules cannot be tolerated,” added Kroes.

The Santa Clara, California-based company said it will move the commission’s decision to the EU courts in Luxembourg

“The decision is improper and incorrect. We have never refused to sell to a company and we have never required that a company not buy from AMD,” said CEO Paul Otellini.

Computer manufactures which were forced to not use AMD’s chips include Acer Inc, Dell Inc, Hewlett-Packard Co, Lenovo Group and NEC Corp, the commission said.

Besides, Intel also made the defrayment to electronics retailer Media Markt only on the condition that it only sells Intel-based PCs.