EU issues charges in global LCD price fixing crackdown

The European Commission yesterday announced that it has charged a number of LCD panel manufacturers as an illegal cartel that fixed the prices of LCD screens for televisions, mobile phones, notebook computers, digital watches and cameras, MP3 players, and other CE equipment.

While the EC did not list the companies it had charged by name, the parties previously under investigation by the US, EU, South Korea, and Japan included Samsung, LG/Phillips, NEC, Seiko, Sharp, Toshiba, Hitachi, and IPS Alpha. Phillips, which divested from its joint venture with LG Electronics last March said it will "vigorously oppose" the allegation that it was involved in a cartel. So far, it is the only company to come forth with a statement that confirms its involvement in the EU's claim.

LG, Sharp, Chunghwa, and Hitachi all pleaded guilty of collusion to fix prices on TFT-LCD displays, effectively confirming the existence of a $70 billion global LCD cartel.

The charges issued by the EC are only the first formal step in antitrust litigation, and the companies named may object, defending their positions to the Commission or request oral hearings to present their comments on the case. From there, the Commission can decide if the companies are sound and to end investigation, or continue forward.