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Infineon To Pay $160 Million For Fixing RAM Prices
Jerrod K writes "Infineon Technologies pleaded guilty to charges of price fixing in an international conspiracy. The Justice Department said this is the third largest antitrust settlement ever. Other memory chip makers involved include Hynix, Samsung, and Micron Technology." Reader phalse phace adds a link to CNET's coverage.
For the past 2-3 years, RAM prices haven't dropped--they've gone up. The RAM that I bought with my current computer costs MORE now than it did when I bought it a year ago, and not only that--its crap quality too! Its supposedly PC3700, but won't hit PC3700 speeds on stock timings even with extra voltage!
;)
This is one of the few great examples where we get to love the American legal system
Interestingly, there is a press release on this topic on the Infineon web site. Please note a discrepancy between what the Register says and what their press release says...
Register: "Infineon has agreed to pay a $160m fine to the US government for fixing the price of computer memory from 1999 to 2002, one of the biggest ever penalties imposed by the DoJ's Antitrust division."
Infineon: "The wrongdoing charged by the DoJ was limited to certain OEM customers. Infineon is already been in contact with these customers and has achieved or is in the process of achieving settlements with all of these OEM customers."
So, is the government getting the money or the OEMs. Note that either way, the trickle down to regular folks (i.e., you!) will take a long time.
p.s. I love this quote from the Infineon press release: "Infineon strongly condemns any attempt to fix or stabilize prices. Infineon is committed to vigorous and fair competition based solely on superior products and services."
Infineon 0, U.S. Department of Justice 1.
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If you were to actually pay closer attention to TFA, You'd have noticed the related articles linked at the bottom. More specifically this
"The case centres on allegations that between the end of 2001 and mid-2002, Samsung, Hynix, Micron, Infineon and others covertly agreed to up prices. The alleged jump in prices followed a two-year slump in demand that drove most memory production lines into operating at a loss."
They may not have been named in the settlement, but they certainly have been named at one point or another.
Um, not only did you not RTFA, but you don't seem to realize what the term, "price fixing" means. In a non-monopoly environment(like memory), if one company raises it's prices, it's not price fixing, it's capatilism. If the market doesn't like the higher memory prices, then nobody buys their stuff and either the prices drop or they do.
In this case though, it was a bunch of memory manufacturers who make up a very large chunk of the market colluding to keep prices high. This is kind of like a "Monopoly Voltron"->together they combine forces to become a virtual monopoly, even though they are seperate parts.
Monstar L
My dictionary (written circa 1911) says:
CORPORATION, n. An ingenious device for obtaining individual profit without individual responsibility.
Does that answer the question?
Daniel
Hurry up and jump on the individualist bandwagon!
It's a fine, not a settlement. They're expected to cut a check for the amount to the government, not reimburse consumers.
You can never go home again... but I guess you can shop there.
The difference, my child, is that OPEC is an international entity with no "place of business" in the United States. As such, they have no need to obey U.S. Anti-trust laws in exactly the way the average U.S. citizen has no need of obeying the laws of the United Arab Emirates.
--AC
Because they're a group of countries, not a business, and countries aren't subject to any sort of anti-trust law. They're free to do whatever they want with the their own resources, including gouging other countries. It's one of the wonderful rights you get by being a soverign country.
I realize that globalization is busy blurring the line between the two sets of entities, but at the moment businesses don't have militaries.
That's the real difference.
Random and weird software I've written.
It's not so much the die size, but the circuit complexity. A memory chip is basically the same circuit duplicated several million times. A CPU has registers, ALUs, pipelines, control circuitry, and who knows what else. Memory chips are cheaper to design, and sell in greater quantities.
"I'm not impatient. I just hate waiting." - My Dad