Intel has settled a lawsuit with chip manufacturer and archrival Advanced Micro Devices. Intel agreed to pay AMD $1.25 billion to settle complaints stemming from as early as 2000.
AMD filed complaints in 2000, 2003 and 2006, claiming Intel acted in an anticompetitive manner. Specifically, AMD said Intel illegally gave rebates to computer makers such as Hewlett-Packard, Dell, Lenovo and NEC on condition that they purchase all or most of their x86 processors from Intel.
Intel was also accused of paying Europe’s largest computer retailer, Media Saturn Holdings, to stock only computers with Intel chips. Because the alleged moves took a toll on AMD’s market share, AMD took its complaints to the European Commission, which fined Intel $1.45 billion.
Intel denied all the allegations. In September, however, the EC released documents detailing communications and interviews from executives at HP, Dell and others to prove the allegations.
Intel said the EC had its facts and economics wrong and appealed the $1.45 billion fine, which is 4.15 percent of its 2008 turnover and less than half the allowed fine, which was 10 percent of a company’s annual revenues.
Settlement Terms
AMD and Intel also adopted…