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3 Firms Confess To Fixing LCD Prices, Agree To Pay $585M Fine

Posted by timothy on from the win-friends-and-influence-people dept.

Oldyeller89 writes "LG, Sharp, and Chunghwa Picture Tubes pleaded guilty to charges of price fixing in violation of the Sherman Antitrust Act. They fixed the prices on LCD screens used not only in their products but also in other products such as Apple's iPods. The three companies agreed to pay $585 million in fines. Perhaps this will cause the price of our TVs to drop?" The New York Times also has a story on the outcome of this case.

8 of 417 comments (clear)

  1. So how much did they make? by revlayle · · Score: 5, Insightful

    $585M in fines... so, how much did they profit before that?

    1. Re:So how much did they make? by Rinisari · · Score: 5, Insightful

      ...and how much are we the public going to see?

      --
      Colin Dean Go a year without DRM
    2. Re:So how much did they make? by Daimanta · · Score: 5, Insightful

      Probably a gift coupon for a $8 mouse. And a lollypop if you are lucky.

      --
      Knowledge is power. Knowledge shared is power lost.
    3. Re:So how much did they make? by Anonymous Coward · · Score: 5, Insightful

      Except we're not in a free market. Republicans claim to be for a free market, but being pro established businesses does not a free market make. The patent system is also a big anti-free market force.

      Also, free markets don't magically remove all price fixing. It only removes price fixing if the barriers of entry are lower then the opportunities presented by the price fixing.

      And nobody has claimed free markets are perfect, just better then the alternatives.

  2. Price drop by Gavin+Scott · · Score: 5, Insightful

    "Perhaps this will cause the price of our TVs to drop?"

    Um, except that they just added $585,000,000.00 to their cost of production, sure.

    G.

  3. No price drop for you! by jvkjvk · · Score: 5, Insightful

    Perhaps this will cause the price of our TVs to drop?

    Perhaps instead they will factor this cost into their new products in attempt to recoup this lost $$.

    So the scenario is: Purchaser is hurt due to collusion and price fixing. Companies are caught. Purchaser is hurt due to fines.

    Fines are only a deterrent if they actually hurt the companies bottom lines. If they can make enough profit during the price fixing phase, and jack up enough prices during the penalty phase to more than offset the penalty there will continue to be massive collusion in such systems.

  4. Re:Hmmmm by spun · · Score: 5, Insightful

    I like paying taxes. My tax money buys me civilization. I just hate freeloaders who want civilization without paying for it. If you don't like civilization, don't live in it. There is plenty of unclaimed land all over the world where you can live without paying taxes to anyone. Have fun!

    --
    - None can love freedom heartily, but good men; the rest love not freedom, but license. -- John Milton
  5. Re:Plasma? by LearnToSpell · · Score: 5, Insightful

    CRTs are inferior technology that have been surpassed.

    Heh. Somebody's obviously not doing any graphics work.

    --
    Haida Manga