LCD makers plead guilty to price-fixing

By on November 12, 2008, 6:21 PM
Price fixing has been going on for years in a number of markets and it looks like three big electronics companies in Asia have been recently caught with dirt on their hands. LG, Sharp and Chunghwa Picture Tubes have all just pled guilty to fixing the prices on LCD screens used not only in their products but also in Apple iPods and Motorola Razr phones among other products.

LGs taking the biggest hit at $400 million for conspiring to fix prices from September 2001 to June 2006, while Sharp will pay a fine of $120 million and Chunghwa $65 million. Apparently this plea deal was the "best possible course of action" for all three companies in order to cut further losses from a legal process and other fines.

Sharp said its chairman, chief executive and some company directors will voluntarily return 10 percent to 30 percent of their compensation for three months, starting in December, to reassure its shareholders and perhaps show some corporate responsibility sadly that does nothing for the millions of customers who bought overpriced computers, cell phones and numerous other electronic devices.

User Comments: 3

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foogan said:
[sarcasm]This is surprising, since in the past year or two that I've been watching LCD computer display prices, they haven't gone down a ******* bit. Here in Canada, even if you can nab the best deals online or in brick 'n' mortar, A 22" widescreen can be had for $200ish at the best, and to purchase any new LCD display, even a 17" is $150-$160 minimum. It hasn't changed a damn bit in 2 years.[/sarcasm]Although I will have to admit that outside of computer displays, LCD prices have made *some* (not much) change. Boxing Day sales of '07 I got a 32" LCD TV with 6.5ms response for $499 CDN, which is still a price to be reckoned with.... But then again that just goes to show that the prices HAVE been fixed.
furryface47 said:
Great they were fined but what happens to the money these companies have to pay? Where does the money go and who gets it? It sure won't be the consumer.
boony said:
"chief executive and some company directors will voluntarily return 10 percent to 30 percent of their compensation for three months"It should be 100 percent."and perhaps show some corporate responsibility" ...right.
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