Intel paid HP loyalty payments to purchase most of its chips from Intel instead of rival AMD, in an attempt to control the incentive for HP to purchase from its competitor. AMD sued Intel under antitrust laws for these payments, which Intel settled by paying $1.25 billion to AMD, suggesting the payments violated antitrust rules.

1. Intel made large loyalty payments to HP in exchange for HP
buying most of their chips from Intel instead of rival AMD.
AMD sued Intel under the antitrust laws, and Intel settled the
case by paying $1.25 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?