January 16, 2011
The U.S. Department of Justice has announced that another executive has been indicted for his role in the global LCD price-fixing conspiracy. According to the U.S. DoJ, a federal grand jury in San Francisco returned an indictment against the current president of HannStar Display Corporation for participating in a global conspiracy to fix the prices of thin-film transistor liquid crystal display (TFT-LCD) panels.
In making its announcement, the DoJ said:
“The indictment, filed today in U.S. District Court in San Francisco, charges that Ding Hui Joe, aka David Joe, conspired with others to suppress and eliminate competition by fixing the prices of TFT-LCD panels. Joe, a resident of Taiwan, is charged with participating in the conspiracy from on or about Sept. 14, 2001, until on or about Jan. 31, 2006.
TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion. Companies directly affected by the LCD price-fixing conspiracy are some of the largest computer and television manufacturers in the world, including Apple, Dell and Hewlett Packard.
According to the one-count felony charge, Joe participated in the conspiracy by agreeing to fix prices of TFT-LCD panels during secret meetings, referred to as “Crystal Meetings,” in hotel rooms in Taipei, Taiwan. The participants in the conspiracy also exchanged information on the sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices. According to the court document, in order to keep the meetings secret and avoid detection, the participants took various steps to conceal the conspiracy.”
More than $890 million in criminal fines have been imposed to date in this investigation, with 22 executives and eight companies charged in the DoJ’s continuing investigation into the LCD industry. In addition, the European Commission has also fined parties 648 million Euro in the case. See: European Commission Fines Six LCD Panel Producers €648 Million for Price Fixing Cartel.
Like Canada, the U.S. Sherman Act prohibits outright certain types of “hard core” agreements between competitors, including bare price-fixing and market allocation/division agreements. Also like Canada, parties in price-fixing and other illegal activities under the Sherman Act are subject to potential private civil actions as a result of contravening the antitrust legislation.
For a copy of the News Release see: Taiwan HannStar Executive Indicted for Role in LCD Price-Fixing Conspiracy. See also European Commission Confirms Sending Statement of Objections to Alleged Participants in LCD Panels Cartel and European Commission Fines Six LCD Panel Producers €648 Million for Price Fixing Cartel.
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