DRAM Makers Face New Price-Fixing Lawsuit
A group of 17 plaintiffs has sued Samsung, SK hynix, and Micron in the US District Court for Northern California, alleging the companies coordinated supply restrictions that pushed DRAM prices up by 700% in four years. The lawsuit is the third major legal assault on the DRAM industry in two decades.
Key points
- Samsung, SK hynix, and Micron, which control 90% of the global DRAM market, are accused of coordinating supply restrictions to drive up memory prices.
- The price increase is estimated to be around 700% in four years.
- The lawsuit is the third major legal assault on the DRAM industry in two decades, following a landmark case in 2002 that saw guilty pleas and fines from major manufacturers.
- The new lawsuit must clear the same legal barrier that killed a similar case in 2020.
- DRAM makers previously fixed prices between 1998 and 2002, leading to a $730 million fine and prison terms for executives.
A new lawsuit has been filed against three major DRAM manufacturers, alleging they coordinated supply restrictions to drive up memory prices. The lawsuit, filed by 17 plaintiffs in the US District Court for Northern California, targets Samsung, SK hynix, and Micron, which together control around 90% of the global DRAM market.
The price increase is estimated to be around 700% in four years, with the lawsuit accusing the companies of engaging in anti-competitive behavior. This is not the first time the DRAM industry has faced allegations of price-fixing, with a landmark case in 2002 resulting in guilty pleas and fines from major manufacturers.
The new lawsuit must clear the same legal barrier that killed a similar case in 2020, which collapsed due to legal issues. The outcome of this lawsuit will be closely watched by the industry and regulators, who are keen to ensure fair competition and prevent anti-competitive practices.
The DRAM industry has a history of price-fixing, with executives serving prison time in the US and companies paying significant fines. The outcome of this lawsuit will determine whether the industry has learned from past mistakes and is committed to fair competition.
Sources
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