Loyalty Payments-Supply Chain Rules

Loyalty Payments-Supply Chain Rules Intel made large loyalty payments to HP in exchange for HP buying most of their thips from Intel instead of rival AMD. AMD sued Intel under the antitrust laws, and Intel settled the case by paying S1.25 billion to AMD.
What incentive conflict was being controlled by these loyalty payments? What advice did Intel ignore when they adopted this practice? Why did they ignore it?

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