$860 Million In Fines Handed Out For LCD Price-Fixing

eldavojohn writes "Six companies have pleaded guilty to worldwide price fixing of Thin-Film Transistor Liquid Crystal Displays from Sept. 14, 2001, to Dec. 1, 2006. For violating the Sherman Act, the companies have agreed to pay criminal fines of over $860 Million. In addition, nine executives have been charged in the scandal. The pricing scam affected some of the largest companies at the time, including Apple, HP and Dell. (If you bought a TFT-LCD from them in that time frame, you may be one of the victimized consumers.) From the DOJ release, 'According to the charge, Chi Mei carried out the conspiracy by agreeing during meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels and issuing price quotations in accordance with the agreements reached. As a part of the conspiracy, Chi Mei exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.'"

Comments

I just wonder

[crazybit]

Which other products might have their prices controlled the same way right now?

Re:I just wonder

[mysidia]

Going out on a limb... DRAM chips, SSDs, Flash memory.

I for one find it odd that old 1gb PC2700 modules are still over $30. And the price seems to be the same no matter which manufacturer you look at.

Meanwhile 8gb compact flash cards, which are oh so more expensive to manufacture than SDRAM, are $30, that is unless you want "true" compact flash which faithfully implements the true IDE standard (I.E. to use them with an IDE-CF adapter, instead of in a digital camera)... those got rebadged as "Industrial CF" and cost like $200.

let me guess

[Anonymous Coward]

As someone who bought a Dell flat panel (for well over $100 IIRC) during that time period, all I need to do is submit my name and address, email address, two phone numbers, and other identifying information, to be entered in a database administered by only-God-knows so I'll eventually receive a check for my share of the proceeds which works out to $13.62 USD. Meanwhile plaintiff attorneys Dewey Cheatem and Howe LLP will receive 40 percent of the settlement, or $90 million. Apple, HP, Dell, and the others neither admit nor deny guilt or responsibility in the matter.

No thanks.

Re:let me guess

[Trepidity]

I've gotten cash before, though usually small amounts. Back in 2004 I got a check for $9 out of some sort of music-CD price-fixing settlement.

This particular case appears not to be a class-action suit at all, though; it's a criminal investigation that imposed a fine. So there is no settlement to distribute, since it's not a civil suit with plaintiffs.

They are always doing this. Better way is to

[zymano]

The better way to handle this is to drop the stupid ineffective fines and threaten that their products wont be allowed to sell in the USA.

Then they wouldn't even dare try to fix prices.

5 year ban.

Savings

[jecowa]

So how much should LCDs really cost? I want some savings on my next purchase.

Re:Apple's Price Fixing

[AHuxley]

Need a cartel to make this work. So the computer firms had to know or accept this. From a wink, nudge limited good quality supply, dont rock the boat to something more direct and personal.
Are docs floating around the computer firms stating to just sign, we need the parts now, as the tech matures we can escape this BS, or was in more an inner clique that kept it going as they where the only ones who saw the docs?

Other co-conspirators will pay more?

[nsushkin]

It's interesting who Chi-Mei conspired WITH. Chi-Mei is not the best LCD manufacturer and they agreed to cooperate with DOJ. There must be other companies who Chi-Mei will bust and who will pay more. Certain Koreans, perhaps?