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Price-Fixing Agreement between AMD/ATI and NVidia: Part III and the End

by linathael . Original by Lionel - 26/09/2008 09:08:08 CEST
In July and at the beginning of September, we were reporting about the legal action launched in USA and dealing with suspected price-fixing agreement between AMD/ATI and NVidia. Among documents provided to the court against AMD/ATI and NVidia, there are copies of emails exchanged between NVidia senior vice president of marketing, Dan Vivoli, to ATI's president and chief operating officer, Dave Orton. Both companies have decided to negotiate an agreement to stop the current legal action for avoiding having to pay higher financial fee. Both companies agreed to pay 850,000 USD which will be used to offer compensation to US customers having purchase a graphic cards from one of the 2 companies between 2002 and 2007.
If one consider that this agreement marks the need of this legal action, it will bring both companies deeper in the "red", as AMD is struggling to compete with Intel CPU (however current GPU are doing very well), and NVidia is still dealing with the issue linked to defective manufacturing process affecting millions of GPUs that could cost the companies more than the 250 millions USD originally budgeted.

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