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The U.S. DoJ probes graphics makers for antitrust violations

Both AMD and NVIDIA have received subpoenas from the U.S. Department of Justice Antitrust Division in connection with the DOJ’s investigation into potential antitrust violations related to graphics processors and cards. The root of the AMD subpoena is its recent acquisition of ATI Technologies last month, which was approved according to Canadian antitrust laws.

 

The DOJ has not made any specific allegations against AMD, ATI, or NVIDIA. Both AMD and NVIDIA said that they intend to cooperate with the DOJ in its investigations.

 

Together, AMD and NVIDIA hold just over half of the entire graphics market, each with about an equal share. Following the news, NVIDIA shares fell 3.6 percent on Nasdaq trade, while AMD shares fell 2.1 percent on the New York Stock Exchange.



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RE: Seriously?
By ninjit on 12/1/2006 2:16:37 PM , Rating: 2
quote:
... AMD and ATI both..


From your statements, I'm guessing you meant AMD and nVidia?
That's what the article is about, and makes sense since ATI is part of AMD now - and thus AMD DOES produced graphics products now.

Or have you been hiding under a rock recently?


RE: Seriously?
By ThisSpaceForRent on 12/1/2006 3:29:31 PM , Rating: 2
No I meant AMD and ATI. You took the quote out of context. I meant they produce different products in the same way that Mitsubishi makes cars and trucks. The two don't share the same market. Similar products, but different markets. Perhaps I wasn't clear in my original post.

ATI still had the same market share before AMD bought them correct? I thought the investigation was silly in that sense. The market balance is the same as before, just one companies owns market share in two different markets, i.e. graphic chips versus processors.


RE: Seriously?
By othercents on 12/1/2006 6:58:04 PM , Rating: 2
Since Nvidia is also named in the suit with AMD I'm guessing that this suit is about Graphics cards and not CPUs. I don't believe that ATI was named in the suit. ATI does not exist anymore other than a product that AMD produces.

It is very possible when AMD had to release it's records on the AMD/ATI merger there was a red flag between AMD and NVIDIA. It is possible that AMD and NVIDIA where working so close together that now that AMD owns ATI a very close relationship with NVIDIA could be illegal.

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