Social:DRAM price fixing
In 2002, the United States Department of Justice, under the Sherman Antitrust Act, began a probe into the activities of dynamic random-access memory (DRAM) manufacturers in response to claims by US computer makers, including Dell and Gateway, that inflated DRAM pricing was causing lost profits and hindering their effectiveness in the marketplace.[citation needed] To date, five manufacturers have pleaded guilty to their involvement in an international price-fixing conspiracy including Hynix, Infineon, Micron Technology, Samsung, and Elpida.[1]
"In December 2003, the Department charged Alfred P. Censullo, a Regional Sales Manager for Micron Technology Inc., with obstruction of justice in violation of 18 U.S.C. § 1503. Censullo pleaded guilty to the charge and admitted to having withheld and altered documents responsive to a grand jury subpoena served on Micron in June 2002."[1]
On 20 October 2004, Infineon also pleaded guilty. The company was fined US$160M for its involvement, then the third largest antitrust fine in US history. In April 2005, Hynix Semiconductor was fined US$185M after they also admitted guilt. In October 2005, Samsung entered a guilty plea in connection with the cartel.[2]
On 5 April 2006, Sun Woo Lee, Senior Manager of DRAM at Samsung Electronics, entered into a plea bargain with the US Government for his involvement in the price fixing conspiracy.[3] Following the plea agreement he was sentenced to 8 months in prison and fined US$250,000.[4]
On 27 April 2018, Hagens Berman filed a class-action lawsuit against Samsung, Hynix, and Micron in U.S. District Court alleging the trio engaged in DRAM price fixing causing prices to skyrocket through 2016 and 2017.[5] Between June 2016 and January 2018, the price of DRAM nearly tripled.[6]
References
- ↑ "Memory makers hit by price-fixing claims". The Register. https://www.theregister.co.uk/2004/02/27/memory_makers_hit_by_pricefixing/.
- ↑ "SAMSUNG AGREES TO PLEAD GUILTY AND TO PAY $300 MILLION CRIMINAL FINE FOR ROLE IN PRICE FIXING CONSPIRACY" (Press release). US Department of Justice. 13 October 2005. Archived from the original on November 12, 2005. Retrieved 30 June 2010.
- ↑ UNITED STATES OF AMERICA v. SUN WOO LEE (D.C. Cir. 2006). Text
- ↑ "Samsung men 'admit' price fixing". BBC News. 2006-02-22. http://news.bbc.co.uk/1/hi/business/4834978.stm.
- ↑ "DRAM Price Fixing". https://www.hbsslaw.com/cases/dram-price-fixing.
- ↑ "Samsung, Hynix, Micron sued for DRAM price fixing that could have raised PC prices". https://www.techrepublic.com/article/samsung-hynix-micron-sued-for-dram-price-fixing-that-could-have-raised-pc-prices/.
External links
- Four Infineon Technologies Executives Agree to Plead Guilty in International DRAM Price-Fixing Conspiracy
- Korean Company Hynix Agrees to Plead Guilty to Price Fixing
 |
