EU DRAM Memory Cartel

DRAM chips are the short-term memory in every PC and server. When only a few fabs worldwide can supply leading-edge memory, OEMs like Dell and HP depend on genuine price competition.

Investigators found evidence of phone calls and meetings where sales executives discussed upcoming price increases and volume plans—not innocent market chatter, but coordinated action.

The cartel coincided with volatile memory prices during the internet buildout. Collusion allegedly dampened competition precisely when buyers needed relief from spikes.

The US moved first criminally. Infineon's guilty plea and executive prison terms signaled that semiconductor cartels face personal accountability.

The EU decision years later added hundreds of millions in fines, with Samsung receiving leniency reductions for cooperation.

Downstream, PC buyers may have paid slightly more per machine—a small per-unit markup multiplied across hundreds of millions of units.

DRAM enforcement previewed later flash-memory and LCD panel cartel cases in the same tight-knit industry culture.

Tech components are global cartel targets with huge volume effects.

Parallel US criminal and EU administrative enforcement complement each other.

Even fast-moving commodity markets can be rigged.

Price coordination on DRAM sold globally.

Information exchanges enabling parallel pricing.

Harm to computer manufacturers and consumers.

Market volatility independent of collusion was cited in defenses.

Fine allocation disputes among corporate groups on appeal.

Oligopoly component markets warrant competitive bidding and audit trails.

Sales staff must not discuss future pricing with rivals.