Samsung, SK Hynix, Micron Sued in US over Memory Price Fixing (en.sedaily.com)

Article summary

Samsung, SK Hynix, and Micron are being sued in the US for alleged memory price fixing, with plaintiffs claiming the companies colluded to reduce supply and drive up prices by 700% over four years. The lawsuit alleges that the companies used the transition to high-bandwidth memory as a pretext to limit supply. The case is currently small in scale, but could expand if the court approves it as a class action. The companies have previously been found guilty of price fixing in the US, resulting in large fines and prison sentences for executives.

Main themes

• Memory Price Fixing
• Antitrust Lawsuit
• Tech Industry
• Supply and Demand
• Competition Law
• Corporate Accountability

What commenters say

• The memory companies' history of price fixing and the current high prices suggest that collusion may be occurring again.
• The high demand for memory and limited supply could be the legitimate reason for price increases, rather than collusion.
• The lack of new entrants in the market and high net margins of the existing companies could indicate tacit collusion.
• Proving collusion will be difficult without a paper trail, and the companies' actions could be seen as a rational response to market conditions.
• The huge increase in demand for memory, rather than collusion, is the primary driver of price increases.
• The industry's long investment cycles and high fixed costs make it risky for companies to rapidly increase production in response to demand.
• The law should be changed to infer collusion from the outcome in cases where prices are high and companies are not increasing production.
• Punishing companies for not anticipating demand and increasing production quickly enough could be unfair and stifle investment.