The lawsuit is alleging that the three companies have been working together to lower the supply of DDR3 and DDR4 RAM in the market, which in turn has led to price hikes across those segments as well, with much of the production efforts across the companies focused on HBM (High Bandwidth Memory) modules that are being sold for use in AI data centres.

“The DRAM oligopolists have simultaneously cut production, coordinated a pivot to HBM and exit from DDR3 and DDR4, and otherwise decreased and locked up conventional DRAM supply while prices charged up with mind-blowing scale and rapidity,” alleges the lawsuit.

Despite prices rising, “Samsung, SK Hynix and Micron continued to squeeze conventional DRAM supply, simultaneously and publicly directing their resources toward less-profitable-per-die HBM – or in some cases, simply junking conventional DRAM supply channels altogether.”

The lawsuit notes that these moves by the three companies have led to consumer purchases suffering “the impacts of a distorted market crippled by the behavior of DRAM oligopolists.” Noting that, in a typical market, prices that are climbing at a higher rate would “pull supply toward them,” the lawsuit notes that “That did not happen.”

As for whether a new company can pop up to offer an underserved market, the lawsuit notes that it would be an uphill battle due to Samsung, Micron, and SK Hynix having accumulated “decades” of trade secrets. Global policy, like export controls set by the United States, also hampers the potential for more competition. “The practical consequence is that when the three firms restrict supply, no outsider can expand output to undercut them.”

Interestingly, the lawsuit has pointed to a past instance of the companies being sued for price-fixing DRAM modules, with Samsung pleading guilty to charges in 2005 and paying a $300 million fine. At the time, the US Department of Justice called the action “an international conspiracy to fix prices in the DRAM market.” SK Hynix also pleaded guilty at the time, paying $185 million in fines, while Micron managed to avoid penalties by working with prosecutors.

The skyrocketing prices of memory have led to many consequences in the consumer market. From price hikes for the PS5, Xbox Series X/S, and the Nintendo Switch 2, to the high price tag for the Steam Machine, and even Apple’s lineup of devices getting more expensive, the fault has largely been placed on the price of memory in the current market. More specifically, on the gaming side of things, there have also been reports of Microsoft and Sony potentially delaying the launch of their next-gen consoles – the PlayStation 6 and Project Helix, respectively – in order to avoid high price tags.