EU fines Asian cos e649 mn for fixing LCD-panel prices

BRUSSELS: The European Union's competition watchdog on Wednesday fined five Taiwanese and South Korean electronics companies e649 million for fixing prices on LCD panels between 2001 and 2006.

A sixth company, Samsung Electronics, also participated in the price fixing, but escaped a fine because it blew the whistle on the cartel, the European Commission said.

Chimei InnoLUx Corp received the biggest fine, euro 300 million, LG Display has to pay euro 215 million, while AU Optronics was fined e 116.8 million. Two smaller companies, Chunghwa Picture Tubes and HannStar Display Corp, received fines of e9 million and e8.1 million, respectively. LCD panels are used in flat screens for televisions, computer monitors and electronic notebooks.

“This was a very well organised cartel,” said Competition Commissioner Joaquin Almunia.

Between October 2001 and February 2006, the companies met about 60 times, mostly in Taiwanese hotels, for what they called “the Crystal meetings”, the Commission said. In addition to fixing prices, they also exchanged information on their future production plans and other business plans, the Commission said.

The cartel affected LCD panel sales worth about e 7 billion in the European market, Almunia said, and the cartel’s impact on consumers was strong because most televisions and computers sold in the region come from Asia.

“Foreign companies, like European ones, need to understand that if they want to do business in Europe they must play fair,” said Almunia. “The companies concerned knew they were breaking competition rules and took steps to conceal their illegal behaviour.”