In 2009, a settlement was reached according to which Intel would pay $1.25 billion in response to a lawsuit filed by AMD in 2005 for influencing buyers to purchase Intel chips.
Both AMD and Intel manufactured microprocessors with x86 technology that was used in most computers in earlier times until Intel decided to invest a substantial amount in a new generation of technology that did not use the x86 concept. Itanium as it was called was a faster and more efficient generation of microprocessors and Intel also patented which meant that AMD could not make it. However, when AMD introduced Athlon which not only boasted of faster speed but also lower price, Intel’s market share suddenly came under threat (Wong, 2006). Companies such as Sony, NEC and Toshiba started opting for Athlon instead of Intel but in year 2002 and 2003, the sales came to a sudden halt. AMD’s senior officials blamed rebate payments made by Intel to buyers. (AMD-Intel Litigation history, 2007)