A new class-action lawsuit has been filed against major RAM manufacturers Samsung, SK Hynix, and Micron, alleging that the companies have colluded to fix prices and manipulate demand for DRAM, contributing to the ongoing global shortage and increased hardware costs. The suit, Garciaguirre et al. v. Samsung Electronics Co., Ltd., et al., claims these actions have artificially inflated prices for essential computing components.
DRAM, or dynamic random-access memory, is a critical component for storing short-term data in virtually all computing devices. Samsung, SK Hynix, and Micron collectively control over 90% of the global DRAM revenue. According to the lawsuit, these companies have allegedly engaged in a conspiracy to fix both the supply and prices of DDR3 and DDR4 RAM. The suit states that this conduct, which the plaintiffs argue makes no economic sense without collusion, has led to an approximate 700% increase in conventional DRAM prices over a four-year period.
The lawsuit outlines a pattern of behavior where, despite soaring demand for DRAM, the manufacturers have reportedly reduced production. This reduction is said to have been a strategic shift to focus on High Bandwidth Memory (HBM), a less profitable component primarily used in data centers. By limiting the output of conventional DRAM, the companies have allegedly driven up prices for purchasers of this essential component, consequently increasing the cost of consumer electronics.
This is not the first time these companies have faced such accusations. The lawsuit notes that between 1998 and 2002, the predecessors of these firms, including Samsung, Hynix, and Micron, were involved in a criminal conspiracy to fix DRAM prices. That case resulted in guilty pleas and substantial fines for Samsung and Hynix, while Micron avoided penalties by cooperating with authorities. Several Samsung executives were imprisoned as a result of that investigation. The group also faced scrutiny from the Chinese government during a RAM price spike between 2016 and 2018.
The current lawsuit seeks permanent injunctive relief to halt the alleged anticompetitive conduct, compelling the defendants to cease coordinated supply restrictions and restore competitive conditions in the conventional DRAM market. Additionally, it aims to recover damages for the plaintiffs and any other affected parties who were subject to the alleged price fixing.
The impact of these rising RAM costs is being felt across the gaming industry. Console manufacturers have reportedly adjusted their pricing strategies. The Xbox Series X is now priced $300 higher than at its launch, and the base PlayStation 5 has seen a $150 price increase since its debut. These increased hardware costs, coupled with higher game prices, present a challenging economic landscape for consumers.