DOJ Subpoenas AMD, Nvidia in Graphics Probe

The Department of Justice has issued subpoenas for both AMD and Nvidia as it investigates possible antitrust violations in the graphics processing market.

The United States Department of Justice has issued subpoenas to graphics developer Nvidia and chipmaker AMD—which just completed its acquisition of graphics powerhouse ATI—as part of an investigation into possible antitrust violations in the graphics card and graphics processing markets. No specific charges have been made against either developer, and both companies (AMD; Nvidia) have pledged to cooperate with the DOJ’s investigation.

The Department of Justice has been tight-lipped about what exactly it’s investigating in the graphics industry, but speculation has centered on allegations of price-fixing. The DOJ has already charged several manufacturers—including Samsung, Hynix, Elpida, and Infineon—of colluding to artificially set the prices for DRAM memory, and the department recently opened a similar investigation of SRAM (static RAM) manufacturers, although the SRAM market is much smaller than that for DRAM.

Historically, antitrust actions in the chip industry have rarely had direct impacts on consumers, since rapid shifts in products and consumer demand tend to drive prices up and down quickly. Its even possible investigations or charges could drive up prices to consumers, as developers pass along the cost of any judgments or settlements in the form of higher prices.