Samsung, SK Hynix Face U.S. Class Action Over Alleged Memory Price Inflation

U.S. consumers have filed a class-action lawsuit against Samsung Electronics Co., SK Hynix Inc. and Micron Technology Inc., alleging the memory-chip makers inflated prices and drove up the cost of consumer electronics.

WccFtech reported on June 29 that 14 U.S. consumers and three small PC assembly and distribution companies filed the damages suit against Samsung Electronics, SK Hynix and Micron in the U.S. District Court for the Northern District of California.

The plaintiffs allege the companies abused their oligopoly in the global memory market, where they hold about a 90% share. They claim the companies artificially created supply shortages and reaped unfair profits.

At the heart of the lawsuit is an allegation of de facto price-fixing. The plaintiffs argue that higher memory-chip prices led to price increases for finished devices such as MacBooks and iPads, causing direct financial harm to consumers.

Memory chips are key components in smartphones, laptops, tablets and servers. When DRAM and NAND flash prices rise, device makers face higher costs. The plaintiffs say those costs were passed on to end consumers.

The complaint also references the companies' past price-fixing cases. Samsung Electronics and Hynix Semiconductor, the predecessor of SK Hynix, were previously fined by the U.S. Department of Justice for colluding to raise DRAM prices in the U.S. market from 1999 to 2002. Samsung paid a $300 million fine and Hynix Semiconductor paid $185 million.

U.S. computer companies also filed separate damages suits related to the matter. The two companies also paid separate compensation to overseas consumers.

Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com