Class action suit says ATI, Nvidia fixed prices

— 12:04 AM on December 11, 2006

Just ten days after both AMD and Nvidia were subpoenaed by the U.S. Department of Justice regarding an unspecified investigation, the two companies have been hit with a class action lawsuit. According to The Inquirer, the suit alleges that both companies conspired to inflate graphics card prices—a practice commonly referred to as price fixing.

The allegation is the defendants and co-conspirators "have engaged in a contract combination, trust or conspiracy, the effect of which was to raise the prices at which they sold graphics processing units and cards to artificially inflated levels."

Executives of the company are also alleged to have had meetings and conversations to discuss pricing of graphics processing units and cards in the US.

One of the complaints relayed by The Inq quotes a variety of evidence, including forum posts and a quote from an American Technology Research analyst who stated, "As a consumer, I have noticed that the price points of video cards have always been pretty equal. The first mover comes out with a product that is $500 and the follower comes out with a product that is $500. They tend to not be in price wars."
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