Flatscreen makers fined €649m for price fixing
Squealer Samsung gets off, but others must cough up
The European Commission has fined six LCD panel makers €649m for fixing the price of their screens.
The six companies must pay €648.9m for fixing prices for LCD screens between October 2001 and February 2006. The six cartel members are: Samsung Electronics, LG Display, AU Optronics, Chimei InnoLux Corporation, Chunghwa Picture Tubes and HannStar Display Corporation.
The investigation found that the companies held monthly meetings over four years in order to set price ranges and minimum prices. They also swapped information on future production, how much factory capacity they were using and other commercially sensitive information.
The screens are used in laptops, computer monitors and TVs.
The meetings, known as "Crystal meetings" took place 60 times, mostly in Taiwanese hotels.
European investigators also found evidence that the six knew what they were doing was illegal. One memo warned everyone taking part: "to take care of security/confidentiality matters and to limit written communication". The memo also drew attention to the Commission's successful investigation into DRAM prices.
Fines were based on the companies' sales within Europe. Samsung Electronics was granted full immunity from the fines because it squealed on the other five cartel members.
LG Display got full immunity from the 2006 fines because it provided evidence that the cartel continued. It was fined €215m. AU was fined €117m, while Chimei must pay 300m. The remaining two firms, Chunghwa and HannStar, must pay €9m and €8m respectively.
See the Commission's statement on LCD price fixing here.
In other Commission news, it is making legally binding an agreement offered by Visa Europe to cut interbank fees for debit cards. ®
COMMENTS
Re: Glad I haven't bought any Samsung products
And I'm glad I have. Aside from having seen excellent quality on the flat screen monitor which I'm using right now, I would sooner find that I've bought from the company that helped bring down a price-fixing cartel than one of the others that carried on with it.
Re: Glad I haven't bought any Samsung products.
I am, they're generally better than the competition and roughly the same price.
Wait, shit.
@Steve X
Glad I haven't bought any Samsung products.
Are you sure? This is about panels, not branded products.
Who proffits
So is the EU bureaucracy going to pocket the €649 Million?
It'd be nice to see the money distributed to, you know, the people who were actually affected by the price fixing.
If you want to get your money back from the companies listed, the EU expect you to sue the manufacturer.
No one made them pay X ... no wait, that's EXACTLY what they did...
Subliteratus, the key word in "price fixing" is "fixing".
If you mean that no-one was forced to choose to pay the fixed price, then you are right, but the whole point of price fixing is that customers were MADE to pay a higher price than normal market dynamics and competition would otherwise have required them so to do.
And now the consumers get to pay all over again, as the manufacturers will have to absorb the fine in current prices.
Way to go EU.
Mines the one with a Sony Bravia in the pocket. Hopefully that was expensive because it was a quality product (so it seems to be).
