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Ati and Nvidia Accused of Keeping the Prices High

Antitrust trials love IT Companies

By Ionut Ciocirlie, Hardware Editor

11th of December 2006, 13:42 GMT

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They really do. And to prove it, a storm of antitrust actions (code 410) has started in the USA against ATI, AMD and Nvidia. The new actions come only weeks after the ones against INTEL and it seems that even more IT giants are on the list with many people joining the antitrust actions. The
idea is one of a classical nature: the companies are being accused of manipulating prices and deliberately keeping them at a higher level than they should.

Lots of people have issued summons and even more followed after the news that ATI and Nvidia received summons from the Department of Justice (DoJ) for unspecified reasons. INTEL however did not receive any subpoena from the DoJ since the manufacturer does not produce any discrete graphics solutions.

There are tons of data, some coming from early 1990 regarding these subpoenas and things seem to be adding up with even more proof related to the fact that Nvidia and Ati have conspired to manipulate the graphics card market. Several voices are saying that the price points of graphic cards are practically always the same, around $500 or more for the top end graphic boards.

The sources also indicate that the two companies "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." Same sources also indicate that both companies have held several meetings in which they discussed the prices of the graphic card. And things can get even worse for Nvidia and Ati because if the accusations turn out to be true, the two will also face charges related to the fact that they've concealed these things all along.
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