INTEL AGREES TO END CHIP WAR WITH RIVALS

04.08.2010 [22:31]
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Baku, August 4 (AZERTAC). Intel Corp (INTC.O), the world`s largest chipmaker, has agreed to stop using threats and bundled prices to hamper competition, settling charges that it illegally abused market dominance, the U.S. Federal Trade Commission said on Wednesday.

Investors mostly shrugged off the deal, which had been expected, with Intel shares little changed in early afternoon.

Urged on by Intel archrival Advanced Micro Devices (AMD.N) and the graphics chipmaker Nvidia Corp (NVDA.O), the FTC in December accused Intel of illegally using its market dominance to stifle competition.

Nvidia stock was up about 2.5 percent at $9.16 on the Nasdaq, while AMD shares were up 0.7 percent at $7.56 on the New York Stock Exchange.

Intel, which makes 80 percent of the world`s microprocessors, also agreed to give makers of complementary products such as graphics chips access to its central processing units for the next six years.

The deal bars Intel from retaliating against computer makers if they do business with non-Intel suppliers.

Intel has been under attack from rival chip makers for years over its aggressive pricing and sales tactics in marketing of the chips that essentially make up the "brains" of personal computers.

INTEL AGREES TO END CHIP WAR WITH RIVALS

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