AMD in the chips after Intel antitrust settlement

Intel to pay $1.2 billion and agrees to new business practices; other cases still loom

Chip-making giant Intel has agreed to pay Advanced Micro Devices $1.25 billion is a settlement of three antitrust and patent disputes, the New York Times and other news outlets reported. One case was filed in U.S. District Court in Delaware; the other two in Japan.

Despite the settlement, Intel still faces several other court fights. The company is appealing a $1.45 billion fine levied by the European Union in May in connection with antitrust charges. Although AMD said it will drop all antitrust complaints as a result of the settlement, an EU official said the settlement won’t affect its own case.

Also, New York state last week filed an antitrust suit against Intel, the Federal Trade Commission is considering opening a case, and the company also is facing a comparatively small $18.6 million fine in Korea.

AMD had accused Intel of bullying computer manufacturers and distributors into using Intel processors in their computers, making what AMD claimed were discriminatory rebate payments and threatening retaliation if other companies did business with AMD.

In the settlement agreement, Intel agreed to follow a set of business practices that have not yet been disclosed, and to cross-license patents with AMD for five years.

Intel and AMD have long battled for market share, although Intel has been the clear leader. AMD made some gains earlier this year, but Intel expanded its lead in the third quarter this year, when it shipped 81.5 percent of the world’s processors, compared with 17.8 percent for AMD.

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Reader Comments

Thu, Nov 12, 2009 MS New Jersey

This article is nonsense.After receiving the 1.25 Billion Dollars, AMd's profit for the first Three quarters of 2009 will be 200 Million Dollars. At the rate AMD is losing money, by the end of 2009, the 200 Million will essentially be wiped out.The settlement by Intel will be like putting a bandaid on an amputated limb.

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