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
Add your own comment

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

#1
Apocolypse007
so when will we actually see the results of this lawsuit? and who will benefit? (seeing as how its class action, I think everyone who bought an ati or nvidia card within the last few years should see something)
Posted on Reply
#2
intel igent
anyone else notice how ATi's price's started to come down after the merger with AMD?
Posted on Reply
#4
intel igent
maybe AMD has some (key word = some) morals
Posted on Reply
#5
WarEagleAU
Bird of Prey
And here I thought AMD had to price low to offer their cards. Now it seems they lost thetop end and couldnt sustain the 500-600 dollar cards. All them pc magazines calling them Value. Good thing I never bought a card during that craze :D
Posted on Reply
#6
cdawall
where the hell are my stars
this is a pointless debate. even if it happened there is nothing we can do now every company wants a high bottom line and considering the hole both companies are in i tihnk that this is stupid the last thing either company needs is a freaking lawsuit...time to watch there stocks tank again.
Posted on Reply
#7
Megasty
by: cdawall
this is a pointless debate. even if it happened there is nothing we can do now every company wants a high bottom line and considering the hole both companies are in i tihnk that this is stupid the last thing either company needs is a freaking lawsuit...time to watch there stocks tank again.
Already sold mine, I don't feel like losing another $3 grand :rolleyes:
Posted on Reply
#8
Darkrealms
by: Tatty_One
I have always been convinced that in these days of 2 main CPU players and just 2 main Gfx players, one person owns all 4(3) companies and is just playing games with us all :D
Where is Bill Gates !%&%$@
ROFL


Doesn't suprise me. Wonder if Intels behind it. Or if someone is looking for a payout. The timing on both companies right now couldn't be better for that . . .
Posted on Reply
#9
niko084
If anyone is honestly surprised by this they need to think a minute.

Good reason why I have slowed my video card buying and deffinetely not buying the top tier.
Posted on Reply
#10
OnionMan
by: Apocolypse007
so when will we actually see the results of this lawsuit? and who will benefit? (seeing as how its class action, I think everyone who bought an ati or nvidia card within the last few years should see something)
There will most likely be very little restitution for us.. Forms, confusion, and waiting for months as it's slowly mail out.. But with something like this that isn't the main point.. Stopping it is more important to all of us..

The first I heard of this was just a few years ago.. Right after that, AMD grabbed up ATI.. From there on ATI's prices seemed to get lower little by little.. Of course the 38xx line and now the 48xx line has really changed things.. Perhaps AMD stopped this when the took over ATI, and the 38xx line was the first real sign of it.. They knew this was coming..

Now Nv drops its prices just days before this yet weeks after the 48xx is released..
Hmmmm..
Posted on Reply
#11
yogurt_21
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 our graphics cards". Unfortunately, doing that is illegal, unless you're the oil companies.
lol no kidding ati and nvidia do it and it's a whole legal issue, oil companies do it daily and it's "capitalism"

this doesn't suprise me at all especially being that the x800/6800-7950/x1950's had almost identical pricing schemes. seemed too coincidental to me.
Posted on Reply
#12
Ekklesis
by: spectre440
me too...
this sucks...
me too...

I divined that the world has become a so "strange" place in last years and is on the slope of destruction... :laugh:
Posted on Reply
#13
mlupple
Class action lawsuits are such shit. Only a communist would come up with such a thing. A corrupt lawyer makes millions upon millions while the victims receive a dollar or two. This is prob bogus anyway.
Posted on Reply
#14
From_Nowhere
Kind of sad that a lot of people see oil as the only artificially inflated industry... The tech industry is just as bad, and in some cases worse. It's a good thing this Nvidia & ATI duopoly was brought up because it may help some people "Open their eyes."
Posted on Reply
#15
Easy Rhino
Linux Advocate
what are you all complaining about? in the past 5 years we have seen unprecedented growth in the graphics card market.
Posted on Reply
#16
Darkrealms
That was a /yawn interesting read. The only thing I really learned was how little they were making. I didn't think the market was that self destructive. Neither company making hardly any profit or both taking losses?
Posted on Reply
#17
imperialreign
well, odd thing is, as much as it's rather apparent looking back (more noticeably how the relations between the two went uber sour after AMD took over ATI);

even if this class action lawsuit did prove it's case - how could AMD be held responsible?


ATI, maybe, as they're still partly seperate, but now under "new management" so-to-speak.


either way, we can't really jump to conclusions until we see the results of the lawsuit as well, and whatever evidence is turned up
Posted on Reply
#18
Darkrealms
by: imperialreign
well, odd thing is, as much as it's rather apparent looking back (more noticeably how the relations between the two went uber sour after AMD took over ATI);

even if this class action lawsuit did prove it's case - how could AMD be held responsible?


ATI, maybe, as they're still partly seperate, but now under "new management" so-to-speak.


either way, we can't really jump to conclusions until we see the results of the lawsuit as well, and whatever evidence is turned up
True and it sounds like if true there's been lots of time to "file" the evidence. Probably ever since AMD took ATI. So truth may not matter if there isn't enough proof anyway. At the least it should make the two companies more wary in the future.
Posted on Reply
#19
Vertol
good god ,when the 6800 series came out what kind of money did they make on that ?
Posted on Reply
#20
Tatty_One
Super Moderator
by: Vertol
good god ,when the 6800 series came out what kind of money did they make on that ?
And the price of an 8800GTX on release :eek:
Posted on Reply
#21
TheGuruStud
by: Vertol
good god ,when the 6800 series came out what kind of money did they make on that ?
I payed $350 for my 6800GT and $400 for an athlon 64 3500.

But if you remember, it was well justified by demand and performance. Nothing could touch them.
Posted on Reply
#22
Megasty
That 8800GTX-Ultra BS was the most expensive duo period. Up until then, there was the $500-600 6800Ultra & 7900GTX. The x800-x1900 joined that bull range as well. Then AMD took over ATI. By that time, NV had the 8800GTX in the works. AMD turning over the 2900XT was a huge mistake because that just continued the conspiracy - although they probably unknowingly did it, the darn thing was still an overpriced POS worth only half of its tag.

I don't even know what to call the 8800GTX-U. Sure it was the best, but that price, geez - the price of that thing is the main reason we're seeing this lawsuit mess. The history behind it just drag both companies into the ground.
Posted on Reply
#23
imperialreign
by: Megasty
That 8800GTX-Ultra BS was the most expensive duo period. Up until then, there was the $500-600 6800Ultra & 7900GTX. The x800-x1900 joined that bull range as well. Then AMD took over ATI. By that time, NV had the 8800GTX in the works. AMD turning over the 2900XT was a huge mistake because that just continued the conspiracy - although they probably unknowingly did it, the darn thing was still an overpriced POS worth only half of its tag.

I don't even know what to call the 8800GTX-U. Sure it was the best, but that price, geez - the price of that thing is the main reason we're seeing this lawsuit mess. The history behind it just drag both companies into the ground.
The Ultras were insanely priced, without a doubt.

ATI have been running with the "no more than $500" market for a while now, at least, IIRC, since the 1950XTX . . .

although . . . anyone remember when ATI were selling 1900 series "crossfire" packages to hold out the upper-end? Two 1900 series cards sold together in a bundle . . .
Posted on Reply
#24
Megasty
by: imperialreign
The Ultras were insanely priced, without a doubt.

ATI have been running with the "no more than $500" market for a while now, at least, IIRC, since the 1950XTX . . .

although . . . anyone remember when ATI were selling 1900 series "crossfire" packages to hold out the upper-end? Two 1900 series cards sold together in a bundle . . .
Yeah, my brother bought them - one of them burned up & no more CF :(
It was so hot it burned a hole in the snow when I threw it out the window :roll:
Then he bought 2 9800GTXs, yeah that's just how long he had them :shadedshu
Posted on Reply
#25
eidairaman1
by: FreedomEclipse
someone call up matrox & tell them how much the enthusiast market is missing them. Matrox have long since confined themselves to a box we call 'industry' - they need to take up arms & come out with a pincer move against ATi/Nv to show the world their absence has not been for nothing....

either that or one of the 3rd party companies like HiS & XFX, GeCube etc etc need to step out & start makin their own graphics cards.....
Hell Beyond Matrix, Call in Via and PowerVR(NEC)
Posted on Reply
Add your own comment