Wednesday, July 16th 2008

ATI (AMD) and NVIDIA Fix Prices in the US, Class Action Slapped Against them

Class actions charged against NVIDIA and ATI (now AMD) reveal that the two companies may have staged a competition over the past half-a-decade or so. A judge read out an email which suggested price fixing was rife in the graphics card market. That follows a class action of 51 different plaintiffs, now combined into one, and across different legal jurisdictions, alleging cartel behaviour not only in graphics chips, but flat panels and CRTs too.

In other words, NVIDIA and ATI may have been fixing prices of their products for a while now, it is believed that they held secret meetings to discuss staged competition, chart out prices, timings of product launches among other things. These pseudo-competitions staged provided improved sales among other things. A PDF File available to us at this point shows that the two indulged in conspiracy to mutually benefit from staged competition, so as to:

  • Fix, stabilize, and maintain prices of products in the US Market.
  • Artificial inflation of product prices.
Provided, are charts that show price-spread between NVIDIA and ATI products. Three major time-scales: Before the 'conspiracy period', during and after a federal grand jury launched an investigation and issued subpoenas to both companies:

Of course, the latest price-cut of NVIDIA GeForce GTX 200 series products doesn't seem to have been taken into account, the price spread between NVIDIA and ATI with their highest-offerings is zero.Sources: IT Examiner, Law.com
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98 Comments on ATI (AMD) and NVIDIA Fix Prices in the US, Class Action Slapped Against them

#1
Bundy
As much as we dont like it, business is about making money, nothing else. Unfortunately, the best way to make money is to be anticompetitive. This type of thing goes on all the time in practically every industry. Disappointing, yes. Surprising, No. And yes, prolly over half of what any of you bought came from rigged markets.:ohwell:
Posted on Reply
#2
NamesDontMatter
by: wolf2009
i dont care if they staged the prices or not, as long as they brought products like 8800 gt for $200 or a little more and HD4850 for $150 .
Shakes head, young gunz these days . . .

Oh I don't care if they particpate in illegal conspiracy activities, thats no big deal as long as I get a good price its all good. At least read 2-3 pages of the PDF man, that sickens me.
Posted on Reply
#3
btarunr
Editor & Senior Moderator
by: wolf2009
i dont care if they staged the prices or not, as long as they brought products like 8800 gt for $200 or a little more and HD4850 for $150 .
It's like this: Early 2008 "ZOMG!!!! Me Wants 8800 GT.....SPENNNND!". Half-way through 2008 "ZOMFG!!!! Me Wants HD4850....sell, SPEEEENNND1!11!".

...to give you a micro-picture.
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#4
Megasty
Dang, I just thought about it. This is going to mess up my investor's dream bigtime if it goes through. My conscience is glowing but my wallet is hurting :confused: :cry:
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#5
NamesDontMatter
Oh btw hey guys chances are theyve done more shit like this and gotten away with alot of it, their involved in many other markets. This is just their karma coming to bite their asses.
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#6
intel igent
i was a victim of the staged pricing :cry: $760 for an x850pe :nutkick:

don't get me wrong it is/was a great card but it cost almost as much as my whole PC at the time :o

kinda pisses me off that i now have a 3850agp that cost me $240 :nutkick:
Posted on Reply
#7
newtekie1
Semi-Retired Folder
Yeah, this isn't really a big surprise. It isn't hard for two companies to come together and say "Hey, we will both make a killing if we both agree to charge outragous prices for our graphics cards". Unfortunately, doing that is illegal, unless you're the oil companies.
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#8
exodusprime1337
just what amd/ati needs. they're already struggling, now we find out that they got issues like this, not good for shareholder relations that's for sure
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#9
Sasqui
by: intel igent
i was a victim of the staged pricing :cry: $760 for an x850pe :nutkick:

don't get me wrong it is/was a great card but it cost almost as much as my whole PC at the time :o

kinda pisses me off that i now have a 3850agp that cost me $240 :nutkick:
Hey, if this is class action, perhaps we'll all end up with a free 4780x2 card, or 280, or perhaps more likely a free Riva TNT? :rolleyes:

This is going to hurt both companies, but looks like they made the bed they now have to sleep in.
Posted on Reply
#10
Megasty
by: Sasqui
Hey, if this is class action, perhaps we'll all end up with a free 4780x2 card, or 280, or perhaps more likely a free Riva TNT? :rolleyes:

This is going to hurt both companies, but looks like they made the bed they now have to sleep in.
Want, Want, DO NOT WANT :pimp: no really, you can have mine :wtf:
Posted on Reply
#11
FatForester
Eh, I'm not really surprised but I'm glad they'll get reamed for it. I'm more pissed that I bought a 8800GT for $330 bucks then seeing it go down to less than $200 in a matter of... a month. :banghead:
Posted on Reply
#12
GLD
I have not let myself fall victim to the crazy costly cards. A video card should be no more then ~$250 max imo. I can live with the pricing ATi/AMD has had for the 3000 and 4000 series. (besides the X2 cards) Wasn't the 3870 only $229 at launch? That is the way it should be! nVidia's prices have still remained so fooking outrageous it isn't even funny. I am not a fan of lawsuits, but if there is price gouging going on then is needs to be stopped. Thank goodness for the awesome $200 cards from ATi. My 3850 was $199 and I will prob. replace it with a $199 4850. That is they way is should be played. :nutkick:
Posted on Reply
#13
chron
by: FatForester
Eh, I'm not really surprised but I'm glad they'll get reamed for it. I'm more pissed that I bought a 8800GT for $330 bucks then seeing it go down to less than $200 in a matter of... a month. :banghead:
I'm right there with you, brother.
Posted on Reply
#14

by: GLD
I have not let myself fall victim to the crazy costly cards. A video card should be no more then ~$250 max imo. I can live with the pricing ATi/AMD has had for the 3000 and 4000 series. (besides the X2 cards) Wasn't the 3870 only $229 at launch? That is the way it should be! nVidia's prices have still remained so fooking outrageous it isn't even funny. I am not a fan of lawsuits, but if there is price gouging going on then is needs to be stopped. Thank goodness for the awesome $200 cards from ATi. My 3850 was $199 and I will prob. replace it with a $199 4850. That is they way is should be played. :nutkick:
i agree with u , i cant spend more than $250 on a card . i'll wait for HD4870 to come down, or i'll get a HD4850 , palit ones .
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#16
Megasty
by: GLD
I have not let myself fall victim to the crazy costly cards. A video card should be no more then ~$250 max imo. I can live with the pricing ATi/AMD has had for the 3000 and 4000 series. (besides the X2 cards) Wasn't the 3870 only $229 at launch? That is the way it should be! nVidia's prices have still remained so fooking outrageous it isn't even funny. I am not a fan of lawsuits, but if there is price gouging going on then is needs to be stopped. Thank goodness for the awesome $200 cards from ATi. My 3850 was $199 and I will prob. replace it with a $199 4850. That is they way is should be played. :nutkick:
Oh how I wish I can spend that little on a card. A 4870 is overkill for me. But I did something stupid. I usually spend about $1000 or so on tech a year, but I set aside a lot more. My wife finally caught on & she made me promise her to give her any money I don't spend on tech after the fiscal yr is over. Well the last fiscal yr ended & I forgot about it - my tech chest had $3700 in it :eek: She blew $2500 of it on a paperweight :cry: Never again :shadedshu The damn thing is fugly as hell too. I'm a buying machine now, even if it means stock too.
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#17
Tatty_One
Senior Moderator
I have always been convinced that in these days of 2 main CPU players and just 2 main Gfx players, one person owns all 4(3) companies and is just playing games with us all :D
Posted on Reply
#18
ShinyG
Nice find, it was fishy that both AMD and nVidia "avoided" going head to head for a couple of years. All their cards were separated by 10-15% performance difference and price, with almost no two cards competing the same price or performance area...
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#19
xubidoo
if you guys feel ripped off how u think we feel in the UK ?

a 280gtx costs around £350 and thats cheap = $ 700+ .... hope that makes u feel better :)
(on release it was roughly £460/$900+)

i paid £205/$410 for my 9800gtx and its down to £170/$350 already :(

altho the ATI cards are a bit better for us ,HD4850 £130/$260

we get royally shafted when it comes to tech
Posted on Reply
#20

by: NamesDontMatter
Shakes head, young gunz these days . . .

Oh I don't care if they particpate in illegal conspiracy activities, thats no big deal as long as I get a good price its all good. At least read 2-3 pages of the PDF man, that sickens me.
well amd released a card for $200 and prices didn't inflate, they went down, the card can be had for $150 now . and the performance i more than 8800GTX which came at $600 . What more do u want ? do u want them to sell it for $100 and go bankrupt ?
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#21
chron
:cry:I can't believe i spent 300 bucks on my x800xl
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#22
thoughtdisorder
Unfortunately it does not surprise me one bit that they have manipulated the consumers.:shadedshu I bet it's that damn El Nino or Al-Qaeda who's to blame!
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#23
Megasty
I just don't like how the mess ended. NV screwed up. They brought out the super 8800GTX & Ultra & charged outrageous prices for it - nearly twice as much as any other card we've seen before. Now we can get a $1000 card's performance for $150. But that's only after they got subpoenaed. Yet they both start this melodrama again with an innocence price war. If you liked the Ultra's prices here - the damn thing was £900 in the UK, yeah that's $1800 :eek: For the most point, lawsuits only help the consumer get fair prices, but look at how long it takes. This price war is only a stage for these two companies, more like a cover-up. These idiots need more than this to be put in their places. They need a 3rd party like Intel to break it up. Its much harder to screw around with 3 comps than 2 any day :D
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#24
smartali89
:wth:

that is the reason that nVidia cards are so expensive and ATI has much lower prices!

here GTX280 is more then twice priced then HD4870 !

:ohwell: Conspiracy is what makes them sell their products,

I doubt Intel and Microsoft are doing same,, Microsoft develops more and more hardware eating software, so Intel and other brands can make more expensive hardware.. seeshh...
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#25
Champ
by: newtekie1
Yeah, this isn't really a big surprise. It isn't hard for two companies to come together and say "Hey, we will both make a killing if we both agree to charge outragous prices for out graphics cards". Unfortunately, doing that is illegal, unless you're the oil companies.
Amen brother:respect:
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