Samsung to Pay $300 Million Fine

WASHINGTON, D.C. -- Samsung Electronics and its U.S. subsidiary Samsung Semiconductor have agreed to plead guilty and pay a $300 million fine for participating in an "international conspiracy" to fix prices on DRAM, the U.S. Department of Justice announced today.

Samsung's fine is the second-largest criminal antitrust fine in U.S. history and the largest criminal fine since 1999, the DOJ said.

Resolving the investigation was "paramount" to Samsung, said Chris Goodhart, the company's director of marketing communications. The settlement will not affect Samsung's day-to-day operations, she said in an e-mail statement.

"Samsung is strongly committed to fair competition and ethical practices and forbids anticompetitive behavior," Goodhart added.

The DOJ filed a one-count felony charge against Samsung today in U.S. District Court in San Francisco. Between April 1999 and June 2002, the South Korean company and its U.S. subsidiary conspired with other DRAM (dynamic RAM) manufacturers to fix prices of DRAM sold to PC and server manufacturers, the DOJ said.

Computer makers affected by the price-fixing scheme were Dell, the former Compaq Computer, Hewlett-Packard, Apple Computer, IBM, and Gateway, the DOJ said.

Under a plea agreement, which must be approved by the court, Samsung has agreed to cooperate with the DOJ in its continuing investigation of other DRAM producers, the DOJ said.

Samsung is charged with contributing to the conspiracy by communicating with competitors about the prices of DRAM to be sold to some customers and then agreeing to charge the settled-on prices, the DOJ said.

Article - PC World