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Micron Seeking Amnesty in DoJ Antitrust Probe?

deaddeng writes "Memory maker Micron Technology is allegedly seeking amnesty from a US Dept. of Justice grand jury investigation of price fixing, collusion, and antitrust by the memory industry, according to numerous news services, including the LA Times and Reuters. Last week, a Micron regional marketing employee pled guilty to charges brought under the same DoJ investigation for destruction of evidence and lying to the grand jury. The DoJ is investigating charges that major memory makers colluded to prevent the success of Rambus memory favored by Intel, and once that was achieved, colluded again to raise prices for DDR-SDRAM in 2001-02. If Micron is granted amnesty, it can keep its executives from facing criminal prosecution, but it may still face civil court challenges."

11 of 164 comments (clear)

  1. Rambus is better? by Anonymous Coward · · Score: 5, Interesting

    And Rambus Inc.'s practices are better?

    1. Re:Rambus is better? by eschasi · · Score: 5, Insightful
      What are you saying here? That Micron et. al. shouldn't be cited for doing illegal things like market-wide collusion simply because RAMBUS tried to illegally pervert the standards process?

      IMHO both RAMBUS and price colluders, if guilty, ought to get it in the neck.

  2. Who can you buy from? by Sheetrock · · Score: 4, Insightful
    Normally, I try to make ethical decisions about where and what I buy. I pick up stuff made in the U.S. when I can (and it's not easy anymore), I avoid patronizing businesses that have practices I don't agree with, and I try to support businesses that benefit our community with our presence.

    Case in point for why being a responsible consumer can actually pay off for the person doing it. The average computer repair shop has a regimen of troubleshooting/burn-in tools that while effective for diagnosing many simple problems is simply not representative of the actual uses and requirements of their customers. At the place I pick up my systems from, the process is tailored to the uses the consumer has for the equipment -- they start with the standard toolkit (POST card, power supply checker, RAM tester, troubleshooting diskette, virus scan, 3D benchmarking suite), but will also try some of the latest games, office software, and any of the stuff you bring in for them to test (basic hourly fee applies if testing goes beyond two hours.) They even run some stuff past the web browser; apparently, certain web features demonstrate sound or display problems even among the same versions of a web browser on different systems due to often overlooked plugin incompatibilities, and some OEM systems come without certain "webfonts" that these guys will put on to make web pages look more like the designer intended. One has to pay a little more for this level of service, but the result is a finely-tuned system without the weeks of learning PC/Windows fundamentals.

    Service varies a great deal depending on where you go. Some businesses are just skimming along without a good deal of regard to the customer, but others are more than eager to throw in everything but the kitchen sink for something like 120%-150% of what the skimmers charge. Local businesses competing against chain stores realize that every edge is important in remaining viable, and their owners/employees tend to be pretty cool people.

    Unfortunately, what we're talking about here is the consumer's choice being limited to two giants: SDRAM and Rambus. This isn't to the benefit of the customer, and I feel strongly that we need to request another standard of memory that is truly Open and Free so that anybody can manufacture it without a patent submarine or limiting consumer freedoms. The playing field is so restricted right now that we're pretty much beholden to pay what they charge if we want the product, and whether or not they're taking unfair advantage of it this isn't a situation that is to our longterm benefit.

    --

    Try not. Do or do not, there is no try.
    -- Dr. Spock, stardate 2822-3.




  3. Isn't Rambus evil? by mattgarnsey · · Score: 4, Funny

    The DoJ is investigating charges that major memory makers colluded to prevent the success of Rambus

    So? Yeah, beat 'em down if they were fixing prices, but I'm not so upset w/ a conspiracy against Rambus. Hell, if they asked me, I would have joined up!

    I have a hard time remembering who are the good guys and who are the bad guys. We still hate the RIAA and love Linux, right? We've got so many jihads, I can't keep them straight!

  4. Similar in some aspects to the Roxio Case ... by leoaugust · · Score: 4, Informative

    Not that it is much of a similarity in actions, but the end goal reminds me of the Roxio case discussed earlier on /.

    Micron and the other memory chip makers allege that Rambus duped an industry group into adopting standards for memory chips for which it already had sought patents. Rambus denies the allegations.

    From a Slashdot Discussion earlier on the Roxio case

    Optima believes most every company in the CD-burner industry may be infringing." Optima's patent was infringed in several standards adopted by the Optical Storage Technology Association (OSTA), which have been incorporated in a number of CD-ROM hardware and software products ...

    So, it is adopted as a Standard, and then Optima sues after almost every CD burner is using it ....

    --
    To see a world in a grain of sand, and then to step back and see the beach where the sand lies ...
  5. Only Micron? by Kurt+Wall · · Score: 5, Interesting

    Rambus, Inc.'s misbehavior is well-known, so Micron is hardly alone here. If Micron is guilty of collusion, the pregnant question is, "With whom were Micron colluding?"

  6. Libertarialism != Capitalism by sparklingfruit · · Score: 5, Insightful

    One is a political ideology, the other is an economic philosophy. Unfettered corporate capitalism leads to fascism (the state regulation of the economy) in that the state becomes a tool of the corporations, rather like you see in the USA today. A well-structured capitalist society *requires* government intervention, for the same reasons a well-structured civil society requires government intervention (in the form of the police, and the judicial arm of the government). Even if you ignore the travesty of corporations-as-entities as practiced by the USA today, and concentrate on corporations-as-public-charters (such as the the US had before about 1880 or so), you still need regulation and monitoring. Otherwise, the biggest corporations will carry the most power, and therefore have the ability to "regulate" (in the political and economic sense) the functioning of corporations of lesser power. This is why the US has the Sherman Act, and anti-trust laws. Now, these laws are not followed, as is evidenced by the recent anti-trust ruling against Microsoft, and the refusal by the US government to follow through on any meaningful penalty. But, even criminal law doesn't work against corporations, as seen by the recent inaction of the US government against the Enron corporation, and its executives responsible for those crimes. The "true principals of capitalism" work no better than the true principles of communism. (*NOT* that there has been an implementation of true communism, except on extremely small scales. The most we've ever seen practiced by as large as a country is socialism.)

  7. You bring up a very good point. by Future+Man+3000 · · Score: 4, Insightful
    At the end of the day, the responsibility falls to the customer to buy or not buy. If you keep buying cheap electronics, don't get upset when you can't find quality anymore. If you've got a problem with somebody's business practices, buy somewhere else (in this case, there's probably a few SDRAM manufacturers that aren't colluding.)

    Too many people are passive consumers. That's why you can't buy a TV that lasts more than three years anymore, that's why you can't legally play DVDs under Linux, and that's what's gonna get us all DRM in our hardware. Modding someone down who happens to believe in supporting your local economy instead of the multinational clusterfsck where we all work 80 hour weeks for $4/hr seems to be the action of someone in fundamental denial of our situation (and their power as a customer).

    --

    I never vote for anyone. I always vote against.
    -- W.C. Fields

  8. Re:Micron deserves amnesty! by eschasi · · Score: 4, Interesting
    Putting on my cynical hat, note that everyone Micro admits to colluding with (you did read the articles, folks?) is a foreign manufacturer. Given the ever-increasing tend towards protectionism in the US, it's not hard to believe there are purely pragmatic reasons why the DOJ would grant US-based Micron amnesty while socking it to those Korean and German competitors.

    What, me cynical?

  9. So, let me get this straight... by Fortunato_NC · · Score: 5, Interesting

    ...and I'll freely admit that I haven't RTFA yet...

    but Rambus surreptitiously cuts a deal with Intel to make their patented technology the new industry standard for memory, and when it backfires, the rest of the industry is guilty of collusion against Rambus?

    The inmates are running the asylum, kiddos, and it's getting nuttier by the minute!

    --
    Blogging Weight Loss, Distance Education, and more at verlin.com
  10. Re:Micron deserves amnesty! by nolife · · Score: 4, Informative

    Micron bought out Dominion Semiconductor, a joint Toshiba-IBM memory fab plant in Manassas, VA in early 2002. As time went on, production went down, work on a second process lab was all but halted and the plant effectively stopped production early in 2003 (I had a family member that worked there). In the same time frame, they also cut production in their main plant in Idaho. The goal at was to also buy or merge with cash strapped Hynix in Korea but that was shot down by the Korean government. I believe their goal was either to move production out of the US or to buy who they could and join forces with those they could not. In that time frame, memory prices were extremely low, companies were failing and Micron saw a chance to gobble up the competition. The gamble failed when the Hynix buy fell through. Interestingly enough, they applied for and have recieved government funds related to memory dumping.
    They had a goal of getting memory prices to a certain level and could not do it with competitors.

    PS.. Crucial is Micron

    --
    Bad boys rape our young girls but Violet gives willingly.