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Intel to Pay AMD $1.25B

Payment settles all antitrust and patent suits

By the Associated Press

Posted Nov 12, 2009 8:51 AM CST

(AP) – 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.

A sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.
A sign is shown in front of Intel Corp. headquarters in Santa Clara, Calif.   (AP Photo/Paul Sakuma, file)
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COMMENTS
Showing 3 of 5 comments
Observer
Nov 12, 2009 5:56 AM CST
I wish I had bought AMD stock a month ago.
Scrub
Nov 12, 2009 4:10 AM CST
and Intel (intc) stock is up today.
attaboy
Nov 12, 2009 3:42 AM CST
"Why is it that when ever any company reaches a certain size - morals, ethics and the law just fly out the window." I think that without committing these "unethical" breeches, they would never have reached the size and power they now hold. Otherwise why WOULD they do it?

Copyright 2012 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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