Nvidia, AMD accused of conspiracy to keep graphics pricing high

Antitrust litigation pours in

By INQUIRER staff: Friday 08 December 2006, 18:23
A FLURRY OF ANTITRUST CLASS actions (code 410) has started in the USA against Nvidia, ATI and AMD.

It never rains but it pours, but this is a blizzard of people with many joining in an antitrust action accusing the firms of manipulating prices.

Summons were issued by one Trong Nguyen on behalf of himself and others against Nvidia, ATI, and AMD. Lots of other plaintiffs have joined in, following news that ATI and Nvidia received summons from the Department of Justice (DoJ) for unspecified reasons, as we reported on the 1st of December, here. Intel did not receive a subpoena from the DoJ. It does not make discrete graphics processor units and hasn't done for quite a while.

The allegation is that Nvidia, ATI and AMD conspired to manipulate graphics card pricing, while the filing seen by the INQ said the DoJ has demanded a heap of data going back to the late 1990s.

The allegations cite sources saying that the price points of graphics cards are practically always the same - at around $500 for the top end stuff.

The allegation is the defendants and co-conspirators "have engaged in a contract combination, trust or conspiracy, the effect of which was to raise the prices at which they sold graphics processing units and cards to artificially inflated levels."

Executives of the company are also alleged to have had meetings and conversations to discuss pricing of graphics processing units and cards in the US.

Further, there are allegations that the defendants concealed this behaviour, which would constitute a cartel, if a judge or the DoJ found against them. UK reps of the firms concerned could not be contacted at press time, as it is after 6PM on a Friday here. µ