Court rejects class action status for Intel antitrust suit

Court rejects class action status for Intel antitrust suit

Summary: Intel today won a key ruling in an antitrust case when a Delaware court rejected the request to grant the case class action status, according to reports.Intel is accused of wrongfully offering discounts to manufacturers, which led to inflated prices.

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Intel today won a key ruling in an antitrust case when a Delaware court rejected the request to grant the case class action status, according to reports.

Intel is accused of wrongfully offering discounts to manufacturers, which led to inflated prices. But the court said that the plaintiffs could not show that consumers were harmed by Intel's discounts.

Intel settled all of its legal disputes, including antitrust litigation, with AMD in November for $1.25 billion. But even as the companies announced the settlement, a defiant Intel maintained that its business practices are not illegal.

The plaintiffs have 21 days to object to today's ruling.

Previous coverage: Intel to pay AMD $1.25 billion as companies end litigation war; Is it a new chip era?

Topics: Security, Enterprise Software, Intel, Legal

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3 comments
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  • The harm is that Intel selected which PC manufactures survived.

    The manufacturers that towed the Intel line were given unrealistic discounts. The companies that marketed both Intel and AMD products paid higher prices for their Intel parts. Those companies were at a competitive disadvantage and many failed or were acquired.

    Intel selected which companies survived. They reduced competition. We're paying more today because of this and will continue paying more into the future.
    Programmer1028
    • Hmmm

      @Programmer1028

      What constitutes an unrealistic discount? Shouldnt Intel be free to sell its chips as it sees fit?

      Or is it the govts job to prevent companies from being acquired or from failing?

      Im sure AMD would have loved to give these other OEM's discounts on their chips...or maybe these other companies were poorly run and so Intel and AMD didnt need or want their business.

      These kind of lawsuits are ridiculous.
      otaddy
      • RE: Court rejects class action status for Intel antitrust suit

        @otaddy While I believe government should have little role in business, the role they should have is preventing monopolies so free markets can actually work and providing fair rules for business practices. It's the second one that applies here.
        Basically if you and a stranger go into a store and the store owner says to the stranger, "For you this television is 20 USD dollars". Then looks at you and says, "Well, for you the same television is 500 USD dollars because you look like you can afford it and I don't really like the way you are dressed." How fair is that and because it is you and not some faceless company can you see their point? It's not Intel's job to put some companies out of business, Intel's job is to make great digital chips to sell at a profit to customers . Picking and choosing your customer base in a free market economy is wrong, monopolistic, and abusive.
        mr1972