December 9, 2010
The European Commission has announced that six producers of LCD panels have been fined €648 million in a price-fixing cartel to fix the prices for LCD panels used in televisions, computer monitors and electronic notebook computers.
In making its announcement, Commission Vice President in charge of competition policy Joaquin Almunia issued the Commission’s standard warning about the potential risks of engaging in price-fixing activities:
“Foreign companies, like European ones, need to understand that if they want to do business in Europe they must play fair. The companies concerned knew they were breaking competition rules and took steps to conceal their illegal behaviour. The only understanding we will show is for those that come forward to denounce a cartel and help prove its existence.”
The six firms involved are Samsung Electronics and LG Display of Korea and Taiwanese firms AU Optronics, Chimei InnoLux Corporation, Chunghwa Picture Tubes and HannStar Display Corporation (Samsung receiving full immunity from fines under the Commission’s leniency program).
According to the Commission, the cartel involved an agreement on prices (including price ranges and minimum prices), information exchanges (relating to future production, capacity utilization, pricing and other commercial terms) and a significant number of meetings over a four year period referred to by the parties as “the Crystal meetings.”
Interestingly, this case also highlights the risk of prejudicial internal documents, with the Commission referring to one document in particular that warned the parties to: “take care of security/confidentiality matters and to limit written communication.”
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