Bookmark and Share


The state of New York has filed a lawsuit against Intel Corp. accusing the chip giant of paying billions of dollars to computer makers in order to discourage them from using microprocessors by Advanced Micro Devices. Dell alone allegedly received $6 billion dollars between 2002 and 2007 and sometimes those payments exceeded Dell’s profits.

The lawsuit alleges Intel paid computer makers, including IBM and HP, to discourage them from utilizing microprocessors produced by Intel’s arch-rival AMD, reports Dow Jones Newswires. For example, as a part of the agreement, Intel compensated below-cost bids against rivals offering AMD-based desktops, servers or workstations by Dell in order to slowdown the increase of AMD’s market share. 

Under a secret pact named the "Mother of all Programs", Intel paid Dell a rebate based on the total cost of central processing units the computer maker bought, the lawsuit claims. The percentage of the rebate could fluctuate, but reached up to 16% as Dell mulled over using AMD processors. Moreover, in one fiscal quarter Intel’s payments constituted 116% of Dell's reported net income, according to the lawsuit.

Intel has already faced similar lawsuits in Europe, Japan, South Korea and the U.S., therefore, the current accusations hardly change the situation drastically.

Dell, HP and Dell declined to comment, but Intel added that it would defend itself. IBM said it would co-operate with the investigation.

Tags: , Intel, AMD, Business, Dell, HP, IBM


Comments currently: 1
Discussion started: 11/08/09 04:53:24 AM
Latest comment: 11/08/09 04:53:24 AM


Of course they game the money. AMD continuously had the better CPU solution during this period. It was more performant, cooler and cheaper. Why wouldn't the world's greatest PC manufacturer use them? Especially between the Athlon64 launch when Intel was dwarfed by AMD's CPUs and the beginning of 2007 when the Core 2 Duo shipments ramped up.

I was perpetually amazed that AMD had the BEST CPU out there for 1 year, then 2 years, then 3 years ... but they never gained serious market share. If ATi would have the better GPU, the balance would immediately change in its favor from 40 / 60 to 60 / 40 . This never happened with Intel and AMD .
0 0 [Posted by: East17  | Date: 11/08/09 04:53:24 AM]


Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month