Another LCD cartel member fined
Last December we reported the multi-million dollar fines given to a cartel of LCD makers, including South Korea's LG Displays, Taiwan-based Chunghwa Picture Tube, and Japan-based Sharp. These companies were convicted of meeting to set prices on desktop computer, laptop and television screens. Worldwide market for LCD panels was approximately $70 billion in 2006.
Now another member of the cartel has been caught. Hitachi displays has pled guilty of overcharging Dell Computer and agreed to pay a $31 million fine. According to Bloomberg news story ("Hitachi Settles Price-Fixing Case for $31 Million", 3/30/09)
Hitachi participated in meetings and communications in Japan, Korea and the U.S. to set display prices for Dell at predetermined levels, the government said. The suppliers agreed to issue price quotations on sales to Dell to enforce the agreements, prosecutors said.
The US government is now seeking criminal convictions of seven corporate leaders involved in the cartel. One, the former Chunghwa CEO, has pled guilty and been sentenced already.
Bravo to the US Justice Department's Antitrust Division. Again, one wonders how much price fixing goes on and never gets caught.
