Minor speeding ticket

12 November 2009 By Robert Cyran Follow @rob_cyran

It’s paying rival AMD $1.25bn and agreeing to soften some of its aggressive marketing ways. Abusive practices or not, the winnertakeall nature of tech generates monopolies that regulators and smaller rivals find difficult to tame.

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Intel and AMD said on November 12 that they had settled all outstanding antitrust and intellectual property disputes. Under the deal, the two chip makers will enter a five year crosslicence agreement. AMD will abandon claims for any breach of a previous licence and Intel will pay AMD $1.25bn. Intel has also agreed to abide by a set of business practices. AMD will drop all pending litigation in the US and two cases in Japan. AMD will also withdraw all regulatory complaints worldwide.

AMD had accused Intel of anticompetitive practices such as payment of kickbacks to computer makers to use Intel chips and issuing threats to cut supplies to computer companies which used AMD chips.

In May, the European Union levied a E1bn ($1.6bn) fine against Intel for abusing its dominant position in the microprocessor market.

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