News | 13 Nov 2009 :
Intel has settled its antitrust dispute with AMD, agreeing to pay the smaller chip maker $1.25 billion (€840 million).
AMD has taken Intel to court in the US and Japan claiming that the chip giant used illegal tactics to "lock AMD out of as many customers and market segments as possible."
However, in a brief joint statement the companies have announced that AMD "is to withdraw all of its regulatory complaints worldwide" in return for some significant concessions from Intel.
"AMD and Intel obtain patent rights from a new five-year cross license agreement, Intel and AMD will give up any claims of breach from the previous license agreement, and Intel will pay AMD $1.25 billion. Intel has also agreed to abide by a set of business practice provisions," the statement reads.
There's no further information on what "business practice provisions" Intel has agreed to, though the question has been asked.
Speaking on a conference call, Intel chief executive Paul Ottelini admitted the company had been wary of being taken before a court. "Antitrust cases are incredibly complex and it's a jury trial, which has its own vagaries."
"While it pains me to write a cheque at any time, in this case, I think it made for a practical settlement. It was a good compromise between the two companies. In many ways, it was a small multiple of the potential damages that could be awarded in a jury trial," he adds.
The deal brings to an end five years of legal wrangling between the companies, and follows the EU's decision to fine Intel a record $1.45 billion (€975 million) for antitrust violations.
Korea's Fair Trade Commission has also hit Intel with an $18.6 million (€12.5 million) fine. Intel is appealing both rulings.
Responding to the deal, AMD chief executive Dirk Meyer claimed the companies were now "competing on a level playing field".
"Intel doesn't have an obligation to help us, they do have an obligation not to do things that are intended to hurt us," he added.