The fine slapped on each of these LCD screen makers was determined by the company’s sales volume in the EU, how long it had been involved in the cartel, and its level of cooperation with investigators. Samsung was exempted from being hit with any fine for its role in whistleblowing on the price-fixing cartel.
Investigations into LCD screen price-fixing allegations are not new to Samsung, LG, AU Optronics and Chi Mei. In August, these Asian LCD panel makers were among the companies sued by the New York Attorney General for operating a decade-long LCD price-fixing cartel which led to US public institutions overpaying for LCD-equipped goods like flat-panel televisions, computer PCs, notebooks and mobile phones.
The European Union is fining five major flat panel screen makers for price fixing, the NY Times reports The European Commission levied total fines of €649 million, or 858 million, on LG Display, the worlds second biggest LCD maker, Chi Mei Optoelectronics, Taiwans largest maker of LCD panels, AU Optronics, Chunghwa Picture Tubes of Taiwan, and HannStar Display on Wednesday for fixing prices of liquid crystal display panels used in consumer devices like computers, mobile phones and televisions The companies were originally charged in July of 2009 with breaking EUs laws on restrictive business practices Chi Mei was fined the most at €300 million Under EU law, the commission can fine companies for up to 10 percent of their global revenue for antitrust violations The largest LCD maker, Samsung Electronics, however wasnt included in the investigation because it actually informed the commission of the violations The US has also investigated this sector and charged eight companies for price-fixing, including LG Display, Sharp and Hitachi Displays These companies paid more than 890 million in fines