LCD makers fined €649 million for price fixing

By on December 8, 2010, 1:28 PM
The European Commission has issued a fine to six LCD makers found to have participated in price fixing, just in time for Christmas. The fine amount is €648.925 million ($857.49 million), according to Tech Eye.

AU Optronics, Samsung, LG, Chimei InnoLux, Chunghwa Picture Tubes, and HannStar Display held so-called "Crystal meetings" between 2001 and 2006. Their goal was to agree on product price ranges and minimum prices of LCDs, with the obvious intent of boosting their own profits. They did so even though they knew it was illegal, and of course tried to cover it all up.

Out of the six companies, Samsung was the only one granted immunity, since it was the one that reported the cartel in the first place. For the others, the fine is broken down as such: €215 million ($284.10 million) for LG, €116.8 million ($154.34 million) for AU Optronics, €300 million ($396.42 million) for Chimei InnoLux, €9.025 million ($11.93 million) for Chunghwa Picture Tubes, and €8.1 million ($10.70 million) for HannStar Display.

"Foreign companies, like European ones, need to understand that if they want to do business in Europe they must play fair," Joaquín Almunia, Vice President of Competition Policy in the EC, said in a statement. "The companies concerned knew they were breaking competition rules and took steps to conceal their illegal behaviour. The only understanding we will show is for those that come forward to denounce a cartel and help prove its existence."





User Comments: 15

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Guest said:

Good!

Now I'm waiting for a news like this in the US

Guest said:

You'll be long dead before that happens. Filthy secrets like that are what the US is built on these days. Uncovering them? Pfft...good luck with that. At least the Europeans are taking a stand. Good show Samsung!

princeton princeton said:

Guest said:

Good!

Now I'm waiting for a news like this in the US

In canada I'm waiting for them to say this about the canadian telecommunications oligopoly. All 3 carriers have identicle plans in most cases. Not a ******* coincidence.

biotank said:

I guess Samsung did a good job on backstabbing it's competitors ~~ lol

Guest said:

Looks like samsung will get my holiday business.

lawfer, TechSpot Paladin, said:

Meh, 10-400 million dollars is like pennies to these companies.

ECHTECH said:

If you expose their secrets, then you will end up like Asange and Wikileaks!!!

matrix86 matrix86 said:

*singingly to the tune "It's the most wonderful time of the year"*

It's the most, greediest tiiiiiime of the year. With companies dealing in all kinds of dealings and screwing you haaaaard. It's the most, greediest tiiiiiiime...of the yeeeeaaaaarrrrr!

TeamworkGuy2 said:

If companies can afford fines like that, I wonder how much they are making?

This is just sad, if LCDs are being price fixed by companies, what other products are also being price fixed...

Guest said:

"In canada I'm waiting for them to say this about the canadian telecommunications oligopoly. All 3 carriers have identicle plans in most cases. Not a ***** coincidence. "

You are totally right, what we pay here in Manitoba is nearly identical to what was charged in Saskatchewan. Also, the cost of internet here is ridiculous; it's probably 10 times more than what it is in some European countries. My 10mb connection here is like 50 dollars a month, but I read that in nations like Romania that would cost about 5 dollars.

Also, cable is still stupid expensive. 50 bux a month! I only watch like 4 channels lol!

captaincranky captaincranky, TechSpot Addict, said:

For all of you that think this is good news, think again. The only place that money will go is to the government agency that won the case.....After which, the LCD makers will tack the fine money onto ther price of the panels and we'll all pay the fine, next time we buy a monitor.

So, to carry on the "hand in the cookie jar" metaphor, the manufacturers will pull their hands out of that cookie jar, make a fist with it, then shove it up our collective a**es.

Happy holidays from the desk of captaincranky.

Guest said:

no. here in romania is 11 $ and is included the telephone subscription(so 3$ included) . but we have very expensive food and poor salary, about 200-300$/month even if u have a master. very few have about 700-900$/month(capital and some corrupts). junk from europe and turkey is selling to us. and from 6 years we have a dictator, with fraud in elections, supported by who knows who(guess). only very stupid people and corrupts will remain in this country. it's a burning hell and nobody cares, only fake remarks.

Lurker101 said:

"Foreign companies, like European ones, need to understand that if they want to do business in Europe they must play fair," Joaquín Almunia, Vice President of Competition Policy in the EC, said in a statement.

What?

mosu said:

And yet in we pay more for LCDs here in Europe!!!

fpsgamerJR62 said:

I wonder what other computer components have been affected by cartel price fixing. It's expensive enough dealing with the normal upgrade cycle without having a cartel jacking up the price of your parts.

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