CCIA Applauds Intel, AMD Settlement

BY CCIA Staff
November 12, 2009

Intel and AMD have agreed to settle outstanding legal disputes. Intel will pay AMD $1.25 billion as part of the deal to end AMD’s civil lawsuit against Intel for allegedly offering rebates and other measures to ensure companies would not use AMD’s microchips.

The Computer & Communications Industry Association has been a long-standing advocate for competition in the technology marketplace for more than 35 years. The following statement can be attributed to CCIA President & CEO Ed Black:

“This is good news for consumers. It’s good for the industry, and good for innovation at a time when our economy most needs it. We commend Intel for seeking to end what looked likely to be a long bitter battle that could only further tarnish its previously well-earned reputation.

“Intel has really been an innovative company with great people and products over the years. The type of practices at the center of this dispute should not be necessary for a company as good as Intel to succeed. While there is unfortunately no explicit admission of wrong doing by Intel, perhaps understandably in view of its continuing legal challenges, the facts that have been made public and the size of the settlement leaves little doubt about culpability. We nevertheless hope this settlement signals a firm commitment from Intel to stay focused, and to compete on the merits of their products, not their power in the marketplace.

“In the past year there has been a massive amount of evidence released on Intel’s business practices as well as various legal actions and fines reprimanding that behavior. We will now be watching to see how this settlement with AMD will play out and impact other chip markets. We’re encouraged and hopeful that on a broader scale, Intel will cease all similar behavior in related markets and put this type of dispute behind them.”

“This case demonstrates the importance of having credible and vigilant competition enforcement agencies to insure consumers have choices and meaningful competition. We expect that having now engaged on these issues, the appropriate agencies will feel obligated to continue to fulfill their responsibilities to keep competition fair going forward.”

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