Major memory makers accused of price fixing

A number of memory makers are accused of banding together to artificially inflate prices

A group of 34 US states has filed a lawsuit against seven makers of DRam memory chips for alleged price fixing.

Infineon Technologies, Hynix Semiconductor, Micron Technology, Mosel Vitelic, Nanya Technology, Elpida Memory and NEC Electronics are accused of banding together to artificially inflate prices.

The companies are alleged to have met on a regular basis between 1998 and 2002 to set prices for memory chips.

Samsung, the world's largest memory maker, is not among the accused.

"Price fixing strikes at the heart of free competition and fair play which underpin our economic system and protect the interests of businesses and consumers alike," said California Attorney General Bill Lockyer.

"The defendants in this case conspired to rig the US market for this essential computer product, working together to keep prices artificially high. In the process, they victimised individual consumers, governmental agencies, schools and taxpayers.

"This lawsuit seeks compensation for those victims and to ensure that the defendants never again violate the fundamental tenets that make our economy work properly."

The suit follows a similar case by the US Department of Justice started in 2002. This case has led to guilty pleas from Samsung, Hynix, Infineon and Elpida, and payment of $730m in fines.