Samsung, Toshiba, Others Accused of LCD Price-Fixing
GovTechGuy writes "Toshiba, Samsung, Sharp, LG and other major technology companies allegedly colluded to fix the prices of LCD screens used in televisions and computers, according to an antitrust suit filed Friday by New York Attorney General Andrew Cuomo. The complaint alleges that top-level executives at those firms attended secret meetings on a monthly or quarterly basis where they agreed upon minimum prices, price targets, increases and rates to be charged to specific computer manufacturers. The suit also accuses the companies of exchanging product information, agreeing to output levels and keeping prices artificially high by avoiding competition. Cuomo is seeking hundreds of millions of dollars in damages and punitive charges for the alleged overcharging of state institutions."
We will see what comes out in court, although I'm holding back judgement until I see the evidence. If they are doing what the complaint alleges, then yes, fine them enough to discourage them (and others) in the future, ie: heavily. Personally I'm glad to see a bit of consumer protection going on for a change. The FTC has become pretty much useless over the last few decades.
Tequila: It's not just for breakfast anymore!
In areas where prices are dropping rapidly its interesting that they are able to find price fixing. It used to be memory now I guess it's moved on to screens.
we'll just see prices stay the same now while the parties involved attempt to regain losses.
Also, require them to sell their crap at lower prices, otherwise they will just keep on overcharging without any more meetings.
Punish price-fixing by price-fixing, at least for a period.
Oh and while you are at it send some money to everybody that bought an LCD monitor.
Sadly this is one of the biggest problems with out country today. The biggest bane to Capitalism is a monopoly. And unfortunately almost every major product we buy be it power, automobiles, computers, food, media, etc. has a group of three or four huge companies that completely control that market. They get together and price fix, control the market, and even control the laws and regulations that are supposed to keep them in check. These types of collusion are no good except for the people at the top of these companies and their stock holders.
Whose ass do you have to sue to get some highres monitors around here?
Did you know that "FTW" ("for the win") is a direct translation of "Sieg Heil"?
such as any telco company, VOIP termination provider, or even gasoline?
agreeing to output levels and keeping prices artificially high
Sounds familiar.
THL phish sticks
... oh, wait. The plasma displays are priced pretty much the same as the LCDs. I guess those of us who want better contrast and refresh (without buying LEDs) get treated the same as those who don't.
It does leave one to wonder, though which technology is actually better margin for the manufacturer. It seems unlikely that the production costs of the two technologies would really be that close.
Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
This is great. Hopefully in the near future we can address price fixing in everything else, like text-messages, internet service, cell phone service .... etc etc etc.
What happened to trust busting?
Are they at it again? Apparently it's worth it! ... 2008 -
http://hardware.slashdot.org/story/08/11/12/215212/3-Firms-Confess-To-Fixing-LCD-Prices-Agree-To-Pay-585M-Fine ... 2009 -
http://hardware.slashdot.org/story/09/03/11/2228206/Hitachi-Fined-31-Million-For-LCD-Price-Fixing
http://hardware.slashdot.org/story/09/12/12/0114248/860-Million-In-Fines-Handed-Out-For-LCD-Price-Fixing
Under fixed prices, they could worry less about lowering prices and instead concentrate on quality and eliminating dead pixels.
But what we see instead is cut-throat competition on price that lowers quality. The same thing happened to the airlines after deregulation. Under regulation, prices were fixed. They now compete on price only and quality has suffered.
Sometimes competition on price can be destructive. Jobs are lost, quality suffers, and ultimately monopolies emerge after competitors have been driven out of business.
Where competitors cooperate they end up to gain more. Everyone does that. To me it's obvious that LCD companies got sued because no large US company holds substancial interests in glass substrates design and manufacturing.
Bring on the retina displays for computers!
"unburleyvable" pointed out an important point here (wish I had some mod points), this isn't the first time around with price fixing with this stuff. I for one think that something new has to be applied to the situation based upon track record. It would seem that their perspective (manufacturer's) after getting caught must be that the point isn't not to do it (price fix) but not to get caught doing it.
Greg
Whatever this story is about, why won't my laptop display it on its monitor? :-)
We need jail time for decision makers. I mean serious jail time. We have seen this over and over and over again with chips and LCDs and CDs and all manner of things like this. It's not as if they don't know it's illegal. They KNOW it is illegal. It is time to either make this type of behavior legal or to get serious about the punishment. Corporations are too often shields for unethical, unlawful, immoral, inhumane, harmful and illegal behavior. When the "corporation" takes all the risk, what is to stop individuals from persisting?
You're confusing what are basically brands with manufacturers.
Many of the automotive companies you listed make cars for one another. That ends up rendering them more as brands, rather than outright manufacturers. Even then, many of them buy their parts from the same parts manufacturers, and only act as mere assemblers most of the time.
The situation is even worse with computers. Like with the automotive companies you listed, all of those computer companies merely assemble computers. They all use components made by a very small number of manufacturers. They basically just assemble them, and stick their company name on the final system. They end up just being brands for what is essentially the same product. You can buy a modern Apple laptop, or buy five older Dell laptops for the same price, and the parts inside will be virtually identical.
If they can't fix the price, they may well have to compete more on actual features...
No kidding. My 8 year old laptop has a 15" 1600x1200 screen. I have not seen anything close to that pixel density before or since. I thought by now we would all be using 4000x3000 27" screens when in fact we have moved backwards with craptacular 1920x1080 screens (1080?! WTF, my ancient laptop is better!).
The price fixing sucked (or sucks) though. I have two 20" LCD's from 2004 that were over $700 each. Big 'ol scam they had running there.
Did you know that "FTW" ("for the win") is a direct translation of "Sieg Heil"?
No, I didn't and no, it's not. The direct translation is Hail Victory.
Pain is merely failure leaving the body
Its probably not easy to reduce dot pitch and pixels. Go sue someone for lack of flying cars..
Perhaps someone can explain/frame for me the whole notion of regulating anti-competitive behavior, and how legal authority to regulate is derived/justified from consistent principles, in a nascent industry? Because it seems very case-by-case to me, as well as pick-and-choose based on "what we don't like".
What I mean is that I sometimes don't understand cases like the following:
- Companies making LCD screens are accused of price fixing for charging high prices, yet Apple, which is the only producer of the iPhone, does not count as a monopoly and is not similarly found to be price fixing a (at one point) $600 phone.
- XM radio and Sirius merged, to much scrutiny of the SEC because this would consolidate the industry and "reduce competition". But how was consolidating into one player any different when there was only one player in the industry at the beginning of this technology? Why is government interested now, but not back then?
I guess I'm confused about fundamental questions. When does it become society's right/responsibility to say that a service/product has evolved such that you cannot use your competitive advantage to gain as much as possible from it? Is it when something rises to the level of being a public good / commodity / right?
Wouldn't you be frustrated that if you had a technology you basically created, you were told that you must allow someone else to compete with you and benefit from your work?
Some things are confusing.
Really? http://www.law.com/jsp/article.jsp?id=1202424438569
rm
Sci-Fi Storm
...is if the fine costs far more than what was made from the corrupt action. If it isn't, then the fine is no more than a cost of doing business. As in most cases, the fine probably *won't* be greater than the profits made, and thus there is nothing good that will come of it.
other assorted tea party morons:
you need a powerful government to regulate the market and keep it fair. left on its own, the market is abused by its largest players. point of economic historical fact
wake the fuck up from your idealistic idiocies please
intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
I just bought a Samsung 27" 1920x1080 monitor, which is plenty highres enough for me. The monitor only is $330 at Costco, the monitor with digital TV built in is $380, for for $50 I went for the one with a tuner, remote control, and build in speakers.
I've abandoned my search for truth; now I'm just looking for some useful delusions.
My phone has a much lower dot pitch, it uses an lcd.
1920x1080 @ 27" is merely 81.5 DPI -- high res, sure, but still quite pixelated. I bet the GP meant to say high-DPI screens.
I'm posting this from a 1920x1200 24" monitor that I bought three years ago for about $200.00. Almost nobody makes an affordable display with more than 1080 rows any more. You can blame HDTV for it, monitor manufacturers would much rather sell computer users the HDTV screens they are already making than create computer-specific resolutions. Before HDTV, monitors were on a steady march to higher resolution, after 1080p became popular, monitors backtracked and have been stuck ever since.
Whose ass do you have to sue to get some highres monitors around here?
Forget it.
The only way that's going to happen is if the pixel count gets magically quadrupled, so you can immediately jump from 1900x1200 on a 24" monitor to 3800x2400.
Any intermediate solutions simply wouldn't work due to issues with scaling existing content. Read: it would look like blurred shit. If you don't want to scale things up in size and keep everything 1:1, then tough luck, because it would require perfect vision and strain the eyes, which would make it inaccessible for the vast majority of people out there (and even then, there are limits). I have a 22" running the bog-standard 1680x1050, and to be honest, sometimes I wouldn't mind having a 24" with the same resolution for extra comfort, after a long day of work...
Scale up: looks like shit
Don't scale up: include a magnifying glass with the monitor
Now, if the pixel count gets quadrupled, then you can keep everything displayed completely the same as now, have the OS lie about resolution and scale everything internally, but also add some new API functions to allow apps to draw certain things (such as font glyphs) at the true native resolution. About seven to ten years later (!), you could consider the transitions successful because all monitors sold would be high-res, all maintained software would have been written to make use of the new API, and all toolbar icons would have been quadrupled in resolution as well.
Unfortunately, you'd still have the issue of graphics on the web, so you'd also need a new image format that would hold a low res and a high res version, and if you said something was "300px" wide, it would technically be a lie, but never mind that.
In conclusion, it's not going to happen, and you can forget it :)
The thing is, market forces work so that companies naturally merge to only 3 or 4 main competitors when an industry is mature. ... At this time, these larger companies are able to take advantage of economies of scale that smaller competitors cannot, and as the industry and technology is mature, new small competitors can't bring any new innovation to the table that outweighs their lack of brand recognition and economies of scale.
So far so good...
The catch is, you need a decent government in place which oversees them and makes sure that they don't form a cartel or collude in any way to screw over the customers.
And there's where you disconnect from both your own argument's internal consistency and what the "Rand-worshiping free-market fans" claim.
The catch, for the cartel-seekers, is that in order to screw over the customers they have to raise prices. And THAT over-compensates for the economies of scale and lack of opportunity for competition on innovation in a mature market. Once the upstarts start up they have to drive the prices back down to keep from being hamstrung.
Meanwhile the upstarts have second-mover advantage: They don't have to make all the design and market-choice mistakes and incur all the related costs that the established players did. Meanwhile a market never REALLY matures - science and technology march on even when the current market players aren't incorporating the incremental and breakthrough improvements. When building new plant it's about as easy to design for the latest-and-greatest as to replicate a former decade's technology - and it may actually be cheaper. Once the new guys are playing the old ones are stuck with aging plant that needs replacement or an expensive retrofit.
So, in the absence of some anticompetitive externality the lifetime of a monopoly or cartel that engages in gouging is limited. It recreates the conditions that lead to the rise of new competitors.
The fly in this ointment (as a previous poster has pointed out) is the government. By a number of mechanisms it can (and tends to) favor the existing players and raise the barriers to the entry of new competitors - or even prescribe a monopoly. THAT's what allows cartels and monopolies to gouge for long periods.
A monopoly or cartel that doesn't mistreat its customers can continue to exist for a long time. Example: Alcoa. It had an effective monopoly on aluminum production for decades - mainly BECAUSE it priced its products low, treated its customers well, and focussed on improving its processes rather than playing zero-sum games to transfer its customers' wealth to itself. Thus competition was both unnecessary to achieve the benefits of a competitive market - and (until post-WWII demobilization enabled Reynolds and Kaiser) market forces drove investment to other areas where more value-added was available.
The problem isn't monopoly per se - it's COERCIVE monopoly. And the main source of coercion (especially coercion that limits entry to markets) is government action.
Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
Agreed, I'm so sick of 1920x1080.. What ever happened to the higher res monitors? 1080p monitors have gotten so cheap but the others have stayed the same (or even gone up) it seems..
In conclusion, it's not going to happen, and you can forget it
Really? In a hundred years, the maximum vertical resolution on a display will be 1080?
The reasonable question is, 'when'? At some point current small high-res screen tech yields will be good enough that the TV companies can spend next to nothing more and have a marketing advantage. That still seems to be a few years off, unfortunately.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
Yes, the people demand LCDs capable of 640x960!
Wait...
... For proving once again that antitrust law applies only to the computer electronics and software industries.
Enjoy your dog and pony show.
I love the way you're modded "interesting" and not "funny". Some people apparently haven't given up on their faith in the legal system's ability to poke its nose where it doesn't belong. :-)
You know, there is a difference between trolling and pointing out the flaws in your reasoning. Just saying.
If a company grows too big, split it in half. That shouldn't hurt stock owners on average because the total value of the stock stays the same. You just have two listed stocks instead of one. Economic mitosis.
Table-ized A.I.
nothing death will not solve, also, not surprised.
Andrew Cuomo is as corrupt as his father, Mario, but has much better political connections now, one generation removed.
http://en.wikipedia.org/wiki/Andrew_Cuomo
Lawsuits such as these recall the Eliot Spitzer days, for those of you whose recollection is vague. From all reports, Eliot Spitzer was the "Champion of the Common Man", during his stint as AG of NYS, and we all know how that turned out, once he was elected Governor of New York.
But, you can be sure that Andrew's skeletons will be much better buried: If the Cuomos have learned anything from their association with the Kennedy clan, it's how to cover "stuff" up.
Just NYS politics in action.
Posting AC, for obvious reasons.
If only OPEC could be held to the standards of everyone else...
Bye!
Some of us use computer displays for more than displaying 'existing content'. Like doing actual work in portrait mode. At least some monitors support pivoting, for those whose employers won't fork out for a fancy monitor stand.
No way, my 15" 1600x1200 screen looks fine. The same density in a larger size would kick ass.
I say you just have bad eyesight old man.
From http://mises.org/daily/3801
Wonder what the public key field is for?
I think USB flash drives are price fixed. Prices haven't changed much for last 2 years.
Will they ever learn?
here is the news results for LCD price fixing in 2010
http://www.google.com/search?q=lcd+price+fixing&hl=en&client=firefox-a&hs=QpG&rls=org.mozilla:en-US:official&tbs=nws:1,cd_min:2010,cd_max:2010,cdr:1&prmd=nl&source=lnt
here is the news results for LCD price fixing in 2009
http://www.google.com/search?q=lcd+price+fixing&hl=en&client=firefox-a&hs=fUb&rls=org.mozilla:en-US:official&tbs=nws:1,cd_min:2009,cd_max:2009,cdr:1&prmd=nl&source=lnt
here is the news results for LCD price fixing in 2008
http://www.google.com/search?q=lcd+price+fixing&hl=en&client=firefox-a&hs=8Vb&rls=org.mozilla:en-US:official&tbs=nws:1,cd_min:2008,cd_max:2008,cdr:1&prmd=nl&source=lnt
DeBeers was able to sustain a wildly lucrative monopoly without government assistance for roughly a century.
Xavier Rabourdin for president 2012
That's the stupidest argument I've ever heard. The core problem with it is that it relies on the assumption that an OS and it's respective applications will break horribly at anything other than 96 DPI. While this is true on Windows (and indeed would make running Windows on a 200 DPI screen a prescription for eye strain), it is a Windows-only problem.
Font scaling and image scaling are solved problems, get with the times.
Game! - Where the stick is mightier than the sword!
Vista and Windows 7 already have all the functionality you're asking for: on a high-resolution screen old applications get a false legacy DPI value and their output is scaled by Windows, and new applications can request to turn that functionality off and work on the real high-resolution DPI. Now all we need is the applications and the high-resolution monitors.... I'm not holding my breath.
Reducing production costs, so simple rule, DO NOT BUY OVERPRICED MONITORS, just buy an HDTV at cheaper price as its the same technology and screen resolutions and panels.
Vista and Windows 7 already have all the functionality you're asking for: on a high-resolution screen old applications get a false legacy DPI value and their output is scaled by Windows, and new applications can request to turn that functionality off and work on the real high-resolution DPI.
Have you seen how those scaled apps look?
I'll tell you: they look like blurry shit. I've covered that in the parent post.
By "new apps" you mean those written in WPF, and, well, so far I've only seen one - a savegame editor for FM2009. Strangely enough, that one *also* looked like blurry shit, with horrible font rendering (at least on my XP box).
That's the stupidest argument I've ever heard. The core problem with it is that it relies on the assumption that an OS and it's respective applications will break horribly at anything other than 96 DPI. While this is true on Windows (and indeed would make running Windows on a 200 DPI screen a prescription for eye strain), it is a Windows-only problem.
Sort of. Windows can lie about DPI and scale everything up, so that interface layouts don't break like they used to in the past. Se7en improved it by a lot, but it's still not good enough and requires a ton of work from application developers.
You can end up with this:
http://www.istartedsomething.com/wp-content/uploads/2008/10/120.png
The start menu looks fine, because Seven comes with 128x128 icons for everything, if I'm not mistaken. However, take a close look at Wordpad - the toolbar icons and the zoom on the bottom.
It gets much worse for legacy apps. For example, this:
DPI virtualization: http://a.imagehost.org/0342/SS-2010-05-15_01_14_47.png
XP-mode scaling: http://h.imagehost.org/0718/SS-2010-05-15_01_18_02.png
The first one looks like blurry shit (as I've said before), and the second one breaks the layout.
Font scaling and image scaling are solved problems, get with the times.
As you can see above, it's *not* a solved problem.
Why do American prosecutors only go after foreign companies?
More specifically, if they're price fixing, how cheap should these things be? 24" IPS panels go on sale for like $249. That's price fixed? That already seems insanely cheap to me.
Weren't they already found guilty of this?
Ugly as sin http://www.tatamotors.com/
I'd go on a Vegan diet but the delivery time from Vega is too long. --brownkitty
How long until someone creates a scandal out of him to "dispose of him"?
Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
They can easily reduce the dot pitch. For the first round, I would be happy if they took some of the laptop screens from a few years back (such as 1600x1200 @ 15"), put them in a case with a DVI port and called it a monitor.
Generally speaking, I've found HDTV to be more expensive than computer monitors. Especially considering most TVs under 32" are only 720p.
I don't see why things would have to be scaled up. ATI's Evergreen GPU already supports high resolutions like 7680x3200. Right now, you have to use multiple screens and span the image across them because the monitor technology doesn't exist, but if someone built a high resolution monitor such as 3800x2400, the card would be able to drive it.
Well, other than military protection and control.
I wanted so badly a monitor with 1920x1200 native, but every single place that sells them on my island only has 1080p computer screens now.
They're not even labeled with resolution anymore. It's all 1080p models they say. Like they're selling fucking TV's.
Manufacturers should be sued for stupidfying the market.
My progression through resolutions over my life. Not one of these steps has been a doubling. They're all incremental.
640x200 -> 640x480 -> 800x600 -> 1024x768 -> 1280x1024 -> 1680x1050 -> 1900x1080
Each one of these has been an instant improvement in my day to day computing. I don't exactly understand your problem with scaling content. A more powerful computer and the natural progression of NEW content has always solved that
I guess the fines from the last time didn't impress them. Maybe the profits are greater than the fines. Kind of like the Toyota fine and the amount saved by not complying with all the safety rules.
Fry, check out Barco, they got what you need, well the LC-5621 and MDCC-6130 are almost there.
A Friendly, I agree that web is an issue(there is em though...), but the fact that any modern OS has DPI(PPI) scaling negates any troll-like-perceptions you might have regarding the issue; hi-rez should be referred to as hi-ppi today, its about making displays sharper not the content smaller. Anyone remember the IBM T221, from years ago?, that could have used PPI scaling...
QuadHD(3840x2160) or 3800x2400 is hardly unrealistic as a next step though(ati 5xxx gen. can theoretically do 8000x8000ish, though DisplayPort tops out at QHDish) and as pointed out, doubling or quadrupling non-ppi-compliant content a good way to make the transition...
So, it is happening, and if you got the cash, you can have one before they become ubiquitous. ;)
Not having hi-ppi is the real price we pay for lcd collusion though, sure a quality 24LCD is half the price it was 8 years ago, but its the same rez, and while the picture quality is slowly improving it is still below that of the CRT's they replaced.
Imagine if CPU, GPU and Ram improved in a similar fashion, that would be no fun...