WHOA!
Intel settled with AMD to settle a legal battle over what AMD says are sketchy sales tactics. Despite the announcement of the settlement, Intel still has to deal with the antitrust charges filed by AMD to several governments.
The biggest of these is in Europe. Regulators fined Intel a record $1.45 billion over what they say was “bullying” PC makers into using Intel chips over AMD. European regulators are aware of the settlement, but, they also say it doesn’t mean Intel doesn’t have to comply with the European antitrust law.
AMD charges that Intel has used threats and financial incentives to keep AMD’s market share from rising above 20%. AMD has quoted a manager from Toshiba as saying the incentives from Intel are “like cocaine.” Similar statements have been made by reps from Gateway Computer Corp.
Intel has defended its actions, saying they are legitimate and that they benefit consumers.
AMD’s stock rose $1.19, a whopping 22%, to $6.51. Intel dropped 6 cents to $19.78.
Intel is still facing other legal issues in Korea, where a lawsuit was filed in New York by Attorney General Andrew Cuomo. This filing has prompted investigation into the allegations by none other than the US Federal Trade Commission.
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