In a deal which surprised everybody, Intel has apparently agreed to pay $1.25 billion to AMD to settle claims made by AMD that Intel was in breach of the Antitrust and Patent laws. The move came days after the European Commission for antitrust offences fined Intel to the excess of $1.5 Billion.
AMD had first filed a lawsuit in 2005 claiming that Intel used its dominant market position to offer buyers heavy discounts if they refrained from buying AMD chips. Since then the two giants were at loggerheads with each other.
Apart from the money involved, Intel has also taken an undertaking that it would not use the alleged unfair trade practices against AMD. The two companies also signed a five year cross-licensing deal with each other and in return AMD has agreed to drop all the cases against Intel.
In joint statement issued by Intel and AMD, the two companies said even though the relations between the two companies have been strained, this deal will end all the legal disputes between the companies and allow them to focus on developing new products for the market.
Though the two parties have settled their issues for now, the controlling authorities have vowed to continue their ongoing investigations against Intel which include charges of breach of contract and antitrust laws