PREDATORY CAPITALISM

For decades, Intel has dominated the micro-processor market yet it still found it necessary ot engage in monopolistic practices, just like Microsoft did with Windows.

Intel to Pay AMD $1.25 Billion to Settle Disputes (Update3)
By Ian King
Nov. 12 (Bloomberg) -- Intel Corp. agreed to pay Advanced Micro Devices Inc. $1.25 billion as part of a legal settlement that ends a four-year dispute between the world’s two largest computer-processor makers. AMD stock rose 22 percent.

The settlement includes all antitrust litigation and patent disputes, the companies said in a statement today. The two agreed to a new five-year cross-license pact and will give up claims of breach from the previous agreement. Intel also agreed to abide by a set of business-practice provisions.

AMD sued Intel in Delaware in 2005 alleging it controls the microprocessor market in part by providing discounts to customers that avoid AMD’s products. Intel has faced anti-trust investigations dating back to the early 1990s and the two companies had battled over licenses before. Intel, which had more than 80 percent of the processor market, is also facing increasing regulatory scrutiny for its business practices.

In May, EU regulators levied a record 1.06 billion-euro ($1.58 billion) fine against Intel and ordered the company to stop using illegal rebates to thwart competitors.

Following an eight-year investigation, the EU found that Intel impeded competition by giving rebates to computer makers that buy all or almost all of their chips from Intel.