We always knew that this is how it would play out in the end – Intel on its knees in front of AMD’s open fly.
Uncork the Dom Perignon
Today Intel agreed to fork out a whopping $1.25 billion to AMD to settle all outstanding legal disputes between the two companies.
The settlement covers antitrust litigation and patent cross license disputes.
Intel also promised to behave itself in future by agreeing to abide by a set of business practice provisions.
In exchange for Intel’s moolah and capitulation, AMD will drop all pending litigation including the case in the U.S. District Court in Delaware and two cases pending in Japan.
No Surprise Here
You see, even as AMD’s five-year-old complaint dragged on in court and like a ravished maiden Intel kept protesting its innocence we had no doubt in our mind that the chip giant had abused its power as the dominant supplier of PC microprocessors to strong-arm/induce PC companies into buying its chips to the detriment of rival supplier AMD.
This is hardly the first time we’ve seen a big information technology vendor engage in prohibited practices.
Large technology Goliaths like Intel or Microsoft find it hard to tolerate Davids like AMD or Netscape nipping at their heels with better products.
Here’s what the two companies said in a joint statement:
While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development.
AMD also intends to withdraw all of its regulatory complaints worldwide.
What happens to the government antitrust suits against Intel in Europe and the U.S. remains to be seen. We hope they move forward.