Intel Settles Lawsuit With AMD
Computer chip makers Intel and AMD announced Thursday that they have reached an agreement that will result in Intel paying AMD $1.25 billion to settle an antitrust lawsuit filed by AMD. "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development," the firms said in a joint statement.
AMD filed an antitrust lawsuit against Intel in June 2005 claiming that Intel "unlawfully maintained its monopoly in the x86 microprocessor market by engaging in worldwide coercion of customers from dealing with AMD." AMD claimed that Intel had made exclusive deals with computer makers such as Dell, Sony and Toshiba "in return for cash payments, discriminatory pricing or market subsidies conditioned" on agreeing not to use AMD products.
Under the settlement, AMD agreed to drop its lawsuit and its complaints with regulators around the world. Intel has agreed to abide by a set of business practices. In addition, AMD and Intel will "obtain patent rights from a new five-year cross license agreement," and will give up any claims of breach from a previous license agreement, the firms said. Intel has faced a host of legal problems. The FTC is investigating the firm. In May, the European Union imposed a $1.5 billion antitrust fine against Intel. And last week New York Attorney General Andrew Cuomo sued Intel for violating antitrust laws by pressuring computer makers to use its chips. Intel CEO Paul S. Otellini said in a conference call that his firm will continue to fight Cuomo's lawsuit and the EU fine. He added that he believes Intel's "discounts are lawful and in the best interest of consumers and the market place."
Categories:
Antitrust
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