LG Display, Sharp, Chunghwa Picture Tubes (CPT) Guilty of LCD Price Fixing

On November 12, 2008, the US Justice Department stated that LG Display (Korea), Sharp (Japan) and Chunghwa Picture Tubes (CPT, Taiwan) pleaded guilty for participating in fixing the prices of LCD panels. LG Display will pay a US$400 million fine. The three companies have agreed to cooperate with the Justice Department to continue investigating the LCD panel price fixing case.

The US investigation involves the coordinated efforts of Europe and Asia’s enforement officials. Private class-action suits have already been filed in US courts seeking damages for both companies and consumers that have LCD panels or products that incorporate LCD panels. Price fixing has affected at least three companies in the US: Dell, Apple and Motorola.

Why price fixing? The answer: to slow the speed of price erosion of LCD panels. LCD panel prices would have been even cheaper had there been no price fixing. Price fixing is serious business. In a 2004 US Supreme Court unanimous decision concluded that cartels were “the supreme evil of antitrust”.

Source: NY Times

[tags]LG Display, LPL, Sharp, Chunghwa Picture Tubes, CPT, Display Manufacturer, LCD Manufacturer, LCD Price Fixing[/tags]

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