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Wednesday, June 06, 2007

Graphics card maker Nvidia facing 51 civil suits


The complaints allege price fixing with rival ATI. An analyst cautions system builders to check product prices

Graphics card manufacturer Nvidia Corp. has revealed it is facing some 51 civil complaints alleging price fixing and anti-competitive business practices relating to its competition with rival ATI, now owned by Advanced Micro Devices Inc. (AMD), alleging the companies conspired to keep component prices artificially high.

The Santa Clara, Calif.-based company revealed in its annual report in March that 42 Nvidiacivil complaints had been filed against it. While the majority were filed in the Northern District Court of California, a number were also pending in the Central District Court of California and several other Federal district courts. Published reports last week indicate the number of suits has now reached 51.

The suits appear to be related to an investigation by the anti-trust division of the U.S. Department of Justice (DOJ) into potential antitrust violations related to graphics processing units and cards. Although no specific allegations have been made by the DOJ, subpoenas were issued last November against Nvidia and AMD.

“Although the (civil) complaints differ, they generally purport to assert federal and state claims based on alleged price fixing, market allocation and anti-competitive business practices between us and (AMD) as a result of its acquisition of ATI,” Nvidia said in its annual report.

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*ITBusiness.ca

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