Years of antitrust allegations and legal wrangling between the world's largest makers of computer chips were resolved last week with a $1.25 billion payment by Intel. But Nvidia CEO Jen-Hsun Huang believes "further action needs to be taken to protect consumers," as he called out the chip giant's business practices in the integrated graphics sector where its pricing bundles make it hard to compete.
According to Huang, the Atom chip can be used with Ion when purchased alone for $45, but Intel offers a three-chip set including its own graphics processor for $25 as a means of driving sales and steering buyers away from the competition. The Nvidia executive went on to say that there is no point in getting an Intel bus license if it's impossible to compete against their allegedly unfair pricing practices.
Intel disputes these claims, of course, saying Nvidia is "playing a trick of numbers" by comparing list price to negotiated price, and that their current pricing strategies meet the legal standard worldwide.
Nvidia is the world's leading supplier of standalone graphics chips but takes a distant second place in overall market share to Intel, which supplies integrated graphics built into the chipsets that accompany all of its processors. Although no legal action is being taken on the pricing strategy front for now, the two companies are currently caught up in a legal battle over the scope of a 2004 chipset licensing agreement.