Intel says it is paying AMD, its largest rival in the computer chip market, $1.25 billion to settle all antitrust and patent suits, and has agreed to abide by a set of "business practice provisions." In return, AMD, which had been complaining to regulators for five years that Intel has broken antitrust laws to limit its market share, will drop suits in the US and Japan, and withdraw those complaints.
In May, the European Union fined Intel a record $1.45 billion, and last year, Korea's Fair Trade Commission fined Intel $18.6 million. Intel is appealing both rulings. Intel has previously defended its sales practices—which include rebates to big Intel customers—as legitimate and good for customers because it can lead to lower prices.