LCD price fixers "sorry"
Three giants of the LCD (liquid crystal display) industry will soon plead guilty to price fixing, Korean-based LG Display Co. will pay $400 million, Taiwan-based Chunghwa Picture Tubes $65 million, and Japan-based Sharp $120 million.
A Bloomberg News article (LG Display, Sharp Shares Fall on Price-Fixing Fine, 11/13/08) quotes a US official as saying: "LG Display, Chunghwa and others met several times from 2001 to 2006 in so-called 'crystal meetings' to set prices on desktop computer, laptop and television screens." Other devices affected are iPods, calculators, and cell phones.
The three all supply displays to Apple Computer, Sharp also sells to Motorola and Dell.
The Bloomberg story notes the ironyof bad timing. "The fines will further undermine the LCD makers' earnings at a time when a glut in the $82 billion industry is driving down prices and forcing manufacturers to scale back production plans."
Bravo to the US DOJ that has been less than great on antitrust issues. These are not easy cases to win. LG's fine is the second-largest criminal fine in US history (after Swiss vitamin maker Hoffmann La Roche). There is also a consumer lawsuit still ongoing.
LCD screens are $8 billion industry worldwide. Japanese, EU, and South Korean government is still investigating price-fixing by these companies in its jurisdiction.
