The EU to fine nine companies over price fixing for flash memory

19th May, 2010 by adina
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The European Union is going to fine a number of nine companies, including Samsung, Toshiba and Hynix together with other six major companies, for alleged price fixing on flash memory. The total sum is $370. The nine companies are pressed to admit to have conspired on high prices in exchange of a 10 percent drop in the fines the European Union wants to levy against each of them.

Micron, which is part of the group of nine companies, is supposed to be given immunity, but has to testify against its partners. There were similar complaints launched in Korea and the United States, but they were dismissed as there was no evidence found by the agencies. An eventual confession made by Micron and the rest of its group is expected to challenge those verdicts.

A fine, as well as a change in policies, could significantly impact on flash memories pricing and as a consequence would impact on the prices of the devices that use this kind of memory. Prices of flash memories have regularly fallen during the past several years. The price fixing implies that costs could have fallen even lower than they did. Apple is considered to be the single largest user of flash memories and it depends on it in the iPhone, iPod and iPad, but also in other devices, like solid-state drives in MacBooks as well as in certain Xserves.


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