DoJ gets up Micron's nose
Another 'anti-competitive practices' investigation -- yawn
Sole US DRAM maker Micron is under investigation by the Antitrust Division of the Department of Justice (DoJ) for anticompetitive practices and has been slapped with a grand jury subpoena compliments of the US District Court for the Northern District of California demanding information relevant to the investigation, the company revealed in a brief press release Tuesday.
Micron promises to cooperate fully with the investigation. The company "does not believe it has violated US antitrust laws," Micron Corporate Affairs Veep Kipp Bedard said in a canned statement. "The DRAM business is highly competitive and subject to extreme volatility. Competitive forces in today's market have led to DRAM prices reaching unprecedented lows."
Well, since no one asked old Kipp anything about prices, we'll just take that little voluntary tidbit to mean there's some issue of underpricing or dumping involved here that the DoJ needs clarified.
But hey, getting worked over by the DoJ Antitrust Division is about as bad as being bitten by a duck, if the MS trial is any indication.
No doubt Micron will be invited to propose a solution and shoot it full of loopholes which the DoJ will defend eagerly. And no doubt Wall Street will see it coming. Indeed, Micron shares closed up thirty cents Tuesday on the news. ®