Wednesday, December 28th 2011

LCD Makers Settle Price-Fixing Case

Five major LCD panel makers, including Samsung, Sharp, Hitachi, HannStar, and Chimei Innolux; agreed to pay over US $553 million in settlement to regulators for a price-fixing case. The case by regulators alleged that these companies colluded to fix prices of LCD panels 1999 and 2006, affecting billions of dollars of commerce. The scam unearthed in 2006, by regulators of Japan, Korea, United States, and the European Union. Many companies and executives have since pleaded guilty to criminal antitrust violations and paid more than US $890 million in fines so far.

The latest payout of $553 million is aimed to resolve claims by "indirect" purchasers that bought televisions and computers with thin film transistor LCDs, as well as claims by eight USA states: Arkansas, California, Florida, Michigan, Missouri, New York, West Virginia and Wisconsin. It also includes payments of $14.7 million by the companies to settle civil fine and penalty law claims by the states, the office of New York Attorney General Eric Schneiderman said. He stated "This price-fixing scheme manipulated the playing field for businesses that abide by the rules, and left consumers to pay artificially higher costs for televisions, computers and other electronics."

The composition of this payout includes US $240 million by Samsung, $115.5 million by Sharp, $110.3 million by Chimei Innolux, $39 million by Hitachi, and $25.7 million by HannStar. Smaller contributors to this payout include $5.3 million by Chunghwa Picture Tubes Ltd., and $2.9 million by Epson.

Interestingly, these are not the only companies that are part of the racket. Taiwan-based AU Optronics, which is a very large display panel manufacturer that sells panels to major ODMs, and Korea's LG Electronics are yet to settle.Source: Reuters
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13 Comments on LCD Makers Settle Price-Fixing Case

#1
TheMailMan78
Banstick Dummy
Wow. Talk about catching your hand in the cookie jar. This is true anti-trust unlike that witch hunt the EU was on with Intel. I notice Toshiba and NEC are not on that list. Good to see.
Posted on Reply
#2
theJesus
It makes me sad to see a company I like (Samsung) involved in this :(
Posted on Reply
#3
Fx
by: theJesus
It makes me sad to see a company I like (Samsung) involved in this :(
ya, this is the kind of news that pisses you off but I really hated to see that Samsung got rapped up into this shady bs
Posted on Reply
#5
Lazzer408
by: LAN_deRf_HA
So are we getting checks?
Exactly. From the pockets of currupt companies into the pockets of other currupt companies. The consumer never wins. Only companies and governments win. The world will never change.
Posted on Reply
#6
syeef
"US $553 million in settlement to regulators" - So what do we "The Customers" get??? After all thats Our money in the first place!!
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#7
Kantastic
What? SONY isn't involved? BLASPHEMY!
Posted on Reply
#8
DannibusX
by: theJesus
It makes me sad to see a company I like (Samsung) involved in this :(
by: Fx
ya, this is the kind of news that pisses you off but I really hated to see that Samsung got rapped up into this shady bs
Wasn't Samsung involved in the whole price fixing of RAM a few years ago? It doesn't surprise me in the slightest.
Posted on Reply
#9
Altered
Before reading the responses I was going through the article thinking whats that like a .02 for each consumer. Already shaking my head saying to myself they wouldnt dare give that money back to the people it actually screwed.
Anyway I did get my .08 check from a settlement between Ebay and a foreign outfit. I have no idea what it was even about but hey I did get supposedly my cut. :laugh:
Posted on Reply
#10
Kantastic
by: Altered
Before reading the responses I was going through the article thinking whats that like a .02 for each consumer. Already shaking my head saying to myself they wouldnt dare give that money back to the people it actually screwed.
Anyway I did get my .08 check from a settlement between Ebay and a foreign outfit. I have no idea what it was even about but hey I did get supposedly my cut. :laugh:
You can bet the lawyers got their cut too. Only difference is, their piece of the pie is about 100000x larger than yours.
Posted on Reply
#12
Woodhull
You can bet the lawyers got their cut too. Only difference is, their piece of the pie is about 100000x larger than yours.
No, this was government regulation, which means the money goes to the tax coffers, and government lawyers are salaried and are not paid contingency fees. Generally only private class actions actually return money to those wronged.
Posted on Reply
#13
Widjaja
I have a feeling everyone corporate won out from use consumer on this deal.
The scam had been going on for a very long time and within that time I am sure they guilty companies have made a fair bit more than they have had to dish out.

So regardless of their shady dealings, they have made a profit and the people who have finally nabbed them have taken a slice of the pie as well.

Win win.

Besides the paying consumer.
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