DDR laptop memory modules and memory chips produced by SK Hynix – Credit: VCG/VCG via Getty Images
Samsung, SK Hynix, and Micron are being sued for allegedly colluding to restrict access to DDR3 and DDR4 memory standards, driving up prices by over 700% over four years and leaving no room in the market for competitors.
As Tom’s Hardware reports, the complaint was filed in the US District Court for Northern California and accuses the memory makers of price-fixing by coordinating their pivots to high-bandwidth memory (HBM). This allowed them to profit on DDR3 and DDR4 memory without being undercut by the competition as they converted fabs to HBM production.
With fabs taking years to build and requiring tens of billions of dollars in investment, the suit alleges that the three memory companies knew they wouldn’t face any external competition since they hold around 90% of the global DRAM market.
The 17 plaintiffs, which include 14 individuals and three small PC businesses, are seeking class-action status, an injunction to halt any further price fixing, and damages.
As Tom’s Hardware points out, a 2018 class-action lawsuit in the same court attempted to make similar claims against the three memory companies. The court dismissed it, noting that there was no clear evidence of an actual agreement between the parties demonstrating conscious and deliberate collaboration. It was later upheld on appeal.
While it seems clear that the pivot to HBM was designed to benefit data center sales over consumer hardware production, proving it was done to preserve high prices may be a more difficult endeavor.
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