Current location: Home Laptop News Intel Pays 1.25B Settlement to AMD in...

Intel Pays 1.25B Settlement to AMD in Anti-Trust Lawsuit

Posted by Daniel Shain

Comments
0
Likes
0
Dislikes
1

10174_main_IntelvsAMD.jpg

Yesterday, Intel decided to get at least one monkey off their back with a ginormous settlement to their main rival, AMD. The settlement is certainly notable, but will this actually lead to a more competitive marketplace?

For those of you not as familiar with the scene, Intel is the monopolistic worldwide leader in microprocessors and AMD, or Advanced Micro Devices, is their cute younger cousin who tries so hard but never seems to make it out of their shadow. Intel supplies over 80% of the world's supply of CPUs. Beyond patent squabbles, AMD has long accused Intel of bullying OEMs (original equipment manufacturers) into buying Intel over AMD via discriminatory price changes and other means.

Yesterday, Intel decided to put this issue to bed and pay off AMD. 1.25B is a lot, but will it change things? Here's a few reasons why it probably won't and a few reasons why it just might.

Why it won't
  • Yes, 1.25B is a lot - but Intel has been known to turn that figure in net profit in a single quarter
  • According to Intel's chief executive Paul S. Otellini, “We have never wavered in our position that Intel did nothing outside the law.” So it sounds like they're not apt to change
  • By settling, Intel avoided some of the backlash and potentially huge fines they might have had to pay had this gone to court, which could have been much more effective at leveling the playing field


    • Why it might
  • 1.25B may not be a ton to Intel, but to AMD, which lately has had trouble turning any profit at all, this is a huge amount
  • As part of the settlement, AMD will cross-license its patents with Intel for the next 5 years, as well as gain access to manufacturing plants formerly forbidden to it. So it's getting more than just a cash injection
  • Antritrust and other lawsuits still abound for Intel, including a 1.45B fine from the EU. Perhaps having paid this off will take some of the public heat off, but investigators aren't letting up, and this is a good thing


    • At the end of the day, Intel still owns the lion's share of the market by a large margin. Only time will tell if these measures prove effective at increasing competition... what do you think?

    Via NYT

    Rate this article

    Most Popular Laptops at Pricegrabber.com

    Model    
    1. G71-340US Notebook [+] Best Offers  
    2. Mini 210-1010NR Netbook [+] Best Offers  
    3. Pavilion Dv6-2150us Notebook [+] Best Offers  

    Add your Comment

    Verification Code
    Verify (type this text in the box below the image)

    Newsletter Sign-Up

    Most Popular Laptops & Gear

    • 1. Pavilion Dv6-2150us Notebook

      Pavilion Dv6-2150us Notebook

    • 2. Inspiron Mini 10v Netbook - Customizable

      Inspiron Mini 10v Netbook - Cu

    • 3. MacBook Notebook

      MacBook Notebook

    • 1. EOS Rebel XSi Black SLR Digital Camera Kit

      EOS Rebel XSi Black SLR Digita

    • 2. EOS Rebel T1i Black SLR Digital Camera Kit w/...

      EOS Rebel T1i Black SLR Digit

    • 3. D90 Black SLR Digital Camera Kit

      D90 Black SLR Digital Camera K

    • 1. iPod Touch 8GB Black MP3 Player

      iPod Touch 8GB Black MP3 Playe

    • 2. iPod Touch 64GB Black MP3 Player

      iPod Touch 64GB Black MP3 Play

    • 3. iPod Touch 32GB Black MP3 Player

      iPod Touch 32GB Black MP3 Play

    • 1. UN55B8000 55" LED TV

      UN55B8000 55" LED TV

    • 2. 42LH30 42" LCD TV

      42LH30 42" LCD TV

    • 3. EOS Rebel XSi Black SLR Digital Camera Kit

      EOS Rebel XSi Black SLR Digita

    Powered by
    PriceGrabber.com

    Reviews & News by brand

    Latest Updates

    • ASUS Eee PC 1000HE

      The Eee PC has a slightly faster Atom processor and a faster FSB compared to the previous models. While this is not enough for anyone to upgrade, it could certainly attract first-time netbook buyers. Read More

    • Dell Vostro A860

      When price and performance must share in compromise, few laptops on the market readily answer the call of duty. When it comes to getting high quality at an affordable price, the Dell Vostro A860... Read More

    • Dell Mini 9

      By now Dell has a full range of netbooks in sizes 9", 10", and oddly a 12" model, of which we’re looking at the smallest 9-incher here. Read More

    More Reviews

    More Top Lists

    • Apple Worldwide Developers Conference 2009

      Yet again, Apple's professional geeks will offer up sessions and hands-on code probing and testing at Moscone West in San Francisco. The dates for 2009 are June 8-12. Read More

    • E3 Expo

      The E3 Expo - also known as the Electronic Entertainment Expo - is the one trade show to visit to get the latest news from the computer and video games industry. Read More

    • CeBIT - Hannover 3-8 March

      Unlike CES, CeBIT is open to the public, so there's no need to be a press or industry affiliate to have a look at this massive trade show, which is the largest in the world. Read More

    • International CES 2009

      Find out all you need to know about the 2009 International CES. It features 2,700 exhibitors, including companies who manufacture products or provide services for the audio, digital imaging, home... Read More

    • Mac World Conference

      Make sure to make a note about the Macworld Expo at the Moscone Center in San Francisco, January 5-9. If you're a Mac user and wish to meet equivalent people in the industry this is the place for you. Read More

    More Events

    More Apple

    More Linux

    More Microsoft

    Editor's Choice

    • Weird, Extraordinary and Record-Breaking Laptops

      Here are the laptops that break one record or another, be it oldest, ugliest, cheapest or just very out of the ordinary. Read More

    • Top 10 Technologies of 2008

      Laptopical's T.J. Aaron summarizes the breakthroughs in technology of 2008. As we are nearing the end of 2008 - find out what made his Top 10 of the most successful and talked about technologies of... Read More

    • Top 10 Netbooks

      The netbook world has gotten increasingly crowded, and until the massive popularity of the form factor wanes this trend will only increase. Beyond Asus and Acer, major corporations like Dell, HP... Read More

    Latest Laptopical.com tweets

    •  

    Follow Laptopical.com on Twitter