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ATI And Nvidia Under Antitrust Investigation

| 11 Dec 2006 15:15

The Department of Justice has begun an investigation into ATI and Nvidia for price fixing. Both companies received subpoenas on December 1st.

With brand new video cards from either company entering the market at $500 US or more, allegations of conspiracy to fix prices have been made toward the popular graphic card makers. As part of their investigation, the DoJ has requested records dating back to the late 90's from both companies.

Allegations have been made that 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 from both groups are also accused of having secret meetings to discuss graphic card pricing, which according to the Inquirer, would make them a cartel if convicted.

Both companies have said they will cooperate with the investigation, including AMD who recently bought ATI.

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