Microprocessor manufacturer Intel has agreed to pay rival chipmaker AMD $1.25 billion to settle a legal dispute between the companies.
Intel is currently under antitrust investigation by the US Federal Trade Commission, and it is believed this settlement reduces the risk of a damaging ruling against the company.
AMD claimed in 2008 that Intel unfairly offered hardware manufacturers vast rebates on its chips. This forced AMD to slash prices, often to the point of making a loss, in order to compete. Intel denies the claims, saying that it “never sells products below cost.”
The European Commission fined Intel €1.06 billion – the largest fine it has issued to date – in May 2009.