FTC Reverses Itself, Blasts Rambus for Creating Unlawful Monopoly
In what can only be called a stunning development in a high profile standards case, the U.S. Federal Trade Commission (FTC) unanimously reversed the earlier decision of one of its own Administrative Law Judges and ruled that semiconductor technology company Rambus, Inc. had "unlawfully monopolized the markets for four computer memory technologies that have been incorporated into industry standards for dynamic random access memory," or DRAM. The FTC will deliberate further before announcing the penalties to be levied against Rambus.
The FTC decision is only the latest in the series of dramatic reversals that has typified the course of a web of cases filed by Rambus against DRAM manufacturers; by the same manufacturers against Rambus; by antitrust regulators against Rambus; and by the same regulators against the same DRAM manufacturers, charging them with a price fixing conspiracy against Rambus.
This decision is very welcome to me on a personal level as well for two reasons: first, the decision is a vitally important ratification by the FTC of the need to enforce rules of trust in standard setting. And second, because I filed a pro bono "friend of the court" brief on behalf of 12 standard setting organizations (including both consortia and accredited organizations) in support of this outcome. The membership of those organizations totals over 8,600 companies, government agencies and universities, and encompasses a broad range of technologies. I've just received a phone call from lead FTC Complaint Counsel Geoffrey Oliver thanking me and the standard setting organizations in whose name the brief was filed for helping the Commissioners reach this decision, as well as welcoming any suggestions on the penalties that the Commission should impose.