Samsung, SK Hynix and Micron Hit With U.S. Antitrust Class Action Over Alleged DRAM Supply Curbs

A class-action lawsuit was filed last Friday, June 29, in the U.S. District Court for the Northern District of California against Samsung Electronics, SK Hynix and Micron Technology, according to Huo Xing Finance. Consumers and small businesses bringing the case allege the three memory makers coordinated to restrict supply of so-called traditional DRAM, creating artificial shortages and pushing prices higher. Data cited in the complaint claims commercial DRAM prices have risen about 700% in aggregate over the past four years, with knock-on effects across global consumer electronics and commercial IT purchasing. The plaintiffs point to Apple's recent broad price increases for iPads and Macs as a textbook example of cost pass-through, arguing the supply gap attributed to the three manufacturers moved through the supply chain and ultimately landed on end customers. The filing also notes prior U.S. enforcement history. Samsung and SK Hynix previously pleaded guilty in a U.S. Department of Justice criminal price-fixing case in the 2000s, paying a combined $731 million in fines, and several executives involved received prison sentences. The complaint cites that record as evidence of a recurring pattern of collusion, contending it bolsters the credibility and legal weight of the current allegations and raises the legal and reputational stakes for the defendants.