Trying to resolve a longstanding legal case, the chip maker Intel agreed on Thursday to pay its rival, Advanced Micro Devices, $1.25 billion to settle antitrust and patent disputes.
The settlement will resolve a case pending in Federal District Court in Delaware and two in Japan. In addition, A.M.D. said it will withdraw all of its regulatory complaints worldwide.
In the antitrust complaint filed in 2005 in Delaware, A.M.D. contended that Intel had bullied dozens of computer makers, retailers and distributors by threatening to retaliate against them if they did business with A.M.D. The complaint also accused Intel of using improper tactics, like discriminatory rebates and subsidies to win and keep customers.
Ouch.