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Memory chip prices have risen sharply since last year, making it more expensive to upgrade computers or buy new products from companies such as Apple.
Those price increases are now the subject of a proposed class-action suit, filed by a group of consumers and small businesses. The complaint targets three companies, Samsung Electronics, Micron and SK Hynix, that combined manufacture more than 90% of the world's supply of dynamic random access memory, called DRAM. It alleges those companies colluded to restrict supply and inflate prices.
The suit, filed in late June in US District Court for the Northern District of California, lists 17 plaintiffs, including 14 individuals and three small businesses that deal in PCs.
A representative from Samsung Electronics did not immediately respond to a request for comment.
A Micron spokesperson told CNET in an email that the company would defend itself against the claims in the lawsuit.
"Micron disagrees with the allegations contained in the complaint," the spokesperson said. "We compete vigorously, fairly and in compliance with all applicable laws wherever we do business."
A spokesperson for SK Hynix said in an email, "We are aware that the complaint has been received, and the company will respond after reviewing it closely."
Plaintiffs claim price fixing started in 2022
The suit's chief allegation is that the three companies set DRAM supply and prices starting in 2022 in ways that make "no economic sense" except as collusion to raise prices. The plaintiffs allege that by cutting production of older memory in order to pivot to high-bandwidth memory geared toward data centers and AI companies, the companies caused the cost of memory to rise.
"This plan has thus far succeeded, as consumer purchasers of conventional DRAM and devices incorporating it have paid supracompetitive prices and have otherwise suffered the impacts of a distorted market crippled by the behavior of DRAM oligopolists," the filing states.
The suit claims these companies violated the Sherman Anti-Trust Act, California's Cartwright Act -- which allows indirect buyers to sue in antitrust cases -- and other antitrust laws. It seeks a jury trial and damages equal to three times the plaintiffs' alleged losses,
Price relief isn't coming soon
A class-action suit, if a court allows it to go forward, could take years to resolve and even longer to pay out to plaintiffs if it succeeds.
In the meantime, shoppers are likely to continue seeing higher prices on products that rely on DRAM, including smartphones, gaming systems and laptops.
Data centers supporting the rapid growth of AI services continue to consume large amounts of memory, contributing to supply shortages and rising prices. Tech experts predict the so-called RAMageddon could last through 2028, forcing manufacturers to raise prices and potentially reducing demand as consumers put off purchases.
