Question

Why was the dispute between Intel and AMD bitter and long, drawn out dispute which ultimately cost them $1.25 billion to settle?

Answer 1

Answer:
Intel and Advanced Microd Devices(AMD) both work in chip technology. Intel is giant in this space and is capturing most of the market share. But AMD had raised multiple issues regarding the functioning of and the tactics intel uses to gain the market share. Intel had been charged with anti trust complaints in many countries which inlcudes US, Europe, japan and South Korea. There were many patent dispute was also going on between intel and AMD. And in most of the issue Intel was lossing, link were found which shows Intel was engaging in tactics involving computer manufacturer that would exclude AMD from the microprocessor market and charge monopolistically for their microprocessor which indirectly was paid by the cutstomer.
But in the end of 2009, AMD and Intel come to mutual settlement with following conclusions:

• Intel will be paying AMD an amount of $1.25 billion
• Intel agreed on refraining from engaging in tactics and antitrust complaints
• The companies also agreed to drop their patent dispute and enter into fiver year cross licensing agreement.

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