US: Samsung, Micron, Hynix sued for alleged price fixing

Another class action lawsuit has been filed that alleges that Samsung, Hynix, and Micron conspired to limit the supply of memory, keeping consumer prices artificially high as a result.

According to Forbes, competition between between Samsung, Micron and Hynix were forcing prices to drop on RAM, despite record demand for the memory. Starting the first calendar quarter of 2016 and through the third quarter of 2017, Hagens Berman alleges that the trio’s revenues from global Dynamic random-access memory (DRAM) sales more than doubled as a result of the production decrease and price-fixing scheme.

Samsung, Micron and Hynix collectively controlled 96% of the worldwide DRAM market share as of the middle of 2017. When the Chinese government announced an investigation into the matter in 2017, the “conduct changed abruptly,” according to the court filing.

“What we’ve uncovered in the DRAM market is a classic antitrust, price-fixing scheme in which a small number of kingpin corporations hold the lion’s share of the market,” said Steve Berman, managing partner of Hagens Berman. “Instead of playing by the rules, Samsung, Micron and Hynix chose to put consumers in a chokehold, wringing the market for more profit.”

Full Content: Forbes

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