Chip maker Intel Corp. has challenged the _1.06 billion fine by the European Commission regulators, arguing that the basis of imposed fine was inconsistent and error-ridden analysis.

The EU had penalized Intel three years back following an eight-year investigation, which the regulators had found Intel guilty of misusing rebates to hinder rivals manufacturers like Advanced Micro Devices (AMD).

But, lawyers for Intel told the Luxembourg-based EU General Court in its opening arguments that the regulators could not provide the essential proof to uphold its 2009 ruling and ignored potentially exculpatory documents from a rival.

Nicholas Green, a lawyer for Intel, said, "Prosecutors cannot pick and choose what evidence to record and which to ignore and thereby prevent exculpatory evidence. It represents a wider systemic failure by the commission."

But according to the investment, Intel allured Acer, Dell, Hewlett-Packard, Lenovo, and others into avoiding AMD's chips. Intel also made payments to Metro's electronics retailer Media Markt on the condition that it would only sell Intel-based computers.

The EU antitrust case was initiated by California-based AMD, but AMD is interestingly longer involved in the case and will not intervene at ongoing hearing as it has already settled the dispute with Intel.