LONDON -- The United States subsidiary of German chipmaker Infineon Technologies AG is being investigated for alleged violation of the Canadian Competition Act with regard to the sale of DRAMs, according to a filing made with the United States Securities and Exchange Commission on Monday (July 26).
Infineon found out about the investigation in May 2004, when the Canadian Competition Bureau advised Infineon's U.S. subsidiary that it was among the targets of a formal inquiry into alleged violations of the Canadian Competition Act in the DRAM industry.
The inquiry is at a "relatively early" stage, according to the filing and Infineon is cooperating with the Competition Bureau, the company said.
The Canadian investigation comes on top of inquiries by the United States Department of Justice and the European Commission into whether Infineon and other leading DRAM vendors operated a cartel in 2001. In addition Infineon is facing a number of claims for compensation from its customers over pricing and opted to set aside 212 million euro (about US$263 million) against these potential liabilities in its third fiscal quarter financial results announced
Tuesday (July 20).