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COMP ET I T I ON LAW
147
Commission Fines LCD Panel Producers for Price
Fixing Cartel
*
TheEuropeanCommissionfinedsixLiquidCrystalDisplay (hereinafter
referred to as “LCD”) panel producers a total of 648.925.000 EURO for
operating a price fixing cartel affecting the European market
1
. However,
one received full immunity in accordance with the Commission’s leniency
programme.
Facts
The six LCD producers, Korean producers Samsung Electronics
(hereinafter referred to as “Samsung”), LG Display (hereinafter referred to
as “LG”) and Taiwanian producers AU Optronics (hereinafter referred to as
“AU”), Chimei InnoLux Corporation (hereinafter referred to as “Chimei”),
Chunghwa Picture Tubes (hereinafter referred to as “Chunghwa”) and
HannStar Display Corporation (hereinafter referred to as “Hannstar)”, have
agreed-upon prices in the market. The agreement between the companies
also includes the setting of price ranges and minimum prices. They also
exchanged information on their future production planning, capacity
utilization, pricing, and other commercial conditions
2
.
LCD panels are made of a lower glass plate and an upper glass plate with
liquid crystal injected in between placed in front of a light source to serve as
a screen on an electronic device. They are mainly used for the manufacturing
of monitors for PCs, laptops, and televisions, and for mobile displays such
as mobile phones, digital cameras, handheld devices, and mp3.
Statement on Investigation (SI) and Statement of Objections (SO)
The Commission sent formal requests for information to the
abovementioned LCD producers on 8 December 2006. The SI contains
information concerning an investigation of a cartel agreement and related
practices concerning price fixing
3
.
*
Article of December 2010
1 The cartel agreement is an illegal and secret agreement concluded between competitors in
order to fix the prices, restrict the supply, and/or divide up markets. Such an agreement may
take a wide variety of forms, but often relate to sales prices or price increases, restrictions on
sales or production capacities, sharing-out of product or geographic markets or customers, and
collusion on the other commercial conditions for the sale of products or services.
2 The companies called these meetings “Crystal meetings”. They held a total of 60 monthly
meetings during a period of 4 years in hotels in Taiwan
3 Article 101 of the EU Treaty prohibits price-fixing and other practices restrictive of competition.