Intel is taking South Korea’s fair trade watchdog to court after it decided to fine Chipzilla for undercutting its semiconductor rivals.

The company filed a formal complaint at the Seoul High Court yesterday in an effort to overturn the Korea Fair Trade Commission’s decision.

The watchdog ordered Intel to cough up $18.6m for violating fair trade rules. The Commission ruled that Intel paid rebates to South Korean computer firms to undercut arch rival AMD.

Intel was charged by the regulator in June last year for violating antitrust laws following a two year investigation into the company’s business dealings in South Korea.

AMD has consistently argued that the rebates Intel offers are an illegal attempt to maintain and extend its monopoly.

Intel meanwhile continues to insist that the discounts aren't predatory, but rather a legit discount system that bases prices on the volume of processors a customer buys.

An Intel spokesman told the Associated Press yesterday that the firm sees the legal action as an "opportunity to demonstrate that our business practices are fair and lawful".

He added: "Our prices have always been above cost and profitable." ®