Samsung, SK Hynix, and Micron Face Antitrust Lawsuit in the U.S. Over DRAM Supply Manipulation

Huo Xing Finance reports that on June 29, last Friday, a class-action lawsuit was filed against Samsung Electronics, SK Hynix, and Micron Technology in the U.S. District Court for the Northern District of California. The plaintiffs, including consumers and small businesses, allege that the three companies violated antitrust laws by coordinating to restrict supply of traditional DRAM, artificially creating shortages and driving up prices. According to data cited in the complaint, this collusion led to a cumulative price increase of approximately 700% for commercial DRAM over the past four years, causing widespread impacts on global consumer electronics and commercial IT procurement. Apple’s recent broad price hikes on iPads and Macs have been cited by plaintiffs as a classic example of price transmission: the supply gap created by the three manufacturers has been passed down through the supply chain, ultimately borne by end consumers. The legal basis for this lawsuit is not without precedent. Samsung and SK Hynix previously pleaded guilty in the 2000s to a U.S. Department of Justice criminal price-fixing case, collectively paying $731 million in fines, with several implicated executives sentenced to prison. The complaint cites this historical record to demonstrate to the court a pattern of systematic and repeated collusion by the three companies, thereby strengthening the credibility and legal weight of the current allegations. Compared to defendants facing such charges for the first time, this prior conviction provides plaintiffs with a stronger reference point and increases the reputational and legal costs for the defendants’ defense.