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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!
RTFA, it covers 1996 to 2006, a time when prices were still pretty damn high. I know, I have a $600 20" monitor from that era.
Tequila: It's not just for breakfast anymore!
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"?
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
>>>Punish price-fixing by price-fixing, at least for a period.
(1) That's unconstitutional. The New York Constitution does not grant such a power as "price fixing".
(2) There's no need for such extremes. When the record companies were caught price-fixing CDs (thereby forming an illegal cartel), they were ordered by the courts to refund ~$25 to all their customers, so that erased any illicit profits they had earned.
(3) And then the free market was left to its own devices, and the cost of CDs plummeted from $13 to $9 within a year, since the cartel was no longer allowed to operate. The same will happen to LCDs too, after the price-fixing cartel is broken-up.
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
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?
(1) That's unconstitutional. The New York Constitution does not grant such a power as "price fixing".
The court could certainly order that they retain only a certain percentage markup on their products for a given time, to be verified with inspectors double-checking their books.
(2) There's no need for such extremes. When the record companies were caught price-fixing CDs (thereby forming an illegal cartel), they were ordered by the courts to refund ~$25 to all their customers, so that erased any illicit profits they had earned.
You're joking right? That settlement was a COMPLETE FRAUD. Customers who had bought 5-6 dozen music CD's over a decade, at $10+ overcharge per CD, were ripped off with a measly $25 voucher to BUY MORE OVERPRICED PRODUCT. The MafiAA companies pocketed the rest, flipped the bird at the artists they regularly rip off, and laughed at how fucking stupid our legal system is.
(3) And then the free market was left to its own devices, and the cost of CDs plummeted from $13 to $9 within a year, since the cartel was no longer allowed to operate. The same will happen to LCDs too, after the price-fixing cartel is broken-up.
Have you seen the prices lately? Pretty fucking uniform - Walmart, Bestbuy, Amazon, all seem to have exactly the same price (or somewhere within 50 cents of each other) on every goddamn CD again, and new releases are hovering steadily around $18. It sounds more like the MafiAA cartel laid low for a few years and went right back to their old tricks again.
>>>That settlement was a COMPLETE FRAUD. Customers who had bought 5-6 dozen music CD's over a decade, at $10+ overcharge per CD
The overcharge was estimated by the court to be $3 per disc. So if you got a $25 refund that covered the overcharge for eight-and-a-half discs. Yes there were some people who bought more than 8.5 discs, but there were also people who bought zero discs (like my mom) and were still eligible for a refund. It all averages out.
AND it punished the companies with a several hundred million dollars loss.
.
>>>were ripped off with a measly $25 voucher to BUY MORE OVERPRICED PRODUCT
False. I got a check, as did my mom, brother, and my two nieces. The checks were converted to CASH. Maybe you should not make false assumptions about something you known nothing about. It was a true refund.
Likewise when Paypal got in trouble, I received a Cash refund of $75 due to a court order. Not a voucher - actual money.
"I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
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.
No, they can pass on that cost and people will use other parts.
Before we talk about the pros and cons of various forms of sanction against these companies, I have a simple question.
These multiple companies are being accused of colluding. That's a word for a specific type of conspiracy. Since this involves those companies conspiring together, does that mean we immediately scoff at the notion, dismiss it out-of-hand without examination of evidence, and accuse anyone who supports the notion of being a tin-foil hat-wearing nutter?
I just want a little consistency. That's how we treat anyone who suggests that people within government would conspire in some way when both money and power is involved. Why don't we act the same way when anyone suggests that people within corporations would conspire in some way when only money is involved?
Oh, right, because you can choose not to do business with particular corporations so you feel little to no need to bury your heads in the sand when they conspire. It's not so easy to escape the malfeasance of your own government, so you feel a desperate need to say that it isn't and could never be so.
It is a miracle that curiosity survives formal education. - Einstein
>>>(2) There's no need for such extremes. When the record companies were caught price-fixing CDs (thereby forming an illegal cartel), they were ordered by the courts to refund ~$25 to all their customers, so that erased any illicit profits they had earned.
If you really believe they came anywhere NEAR paying out what they gained by even just the five years of price fixing that they got caught for, you're delusional. The industry shipped over one billion units in the year 2000. Their settlement of 64 million cash to consumers and 75 million in CD's (at a likely actual cost of a few percent of the 75 million) distributed to non-profit organizations was nowhere near the billions they profited.
And just because when they came up with a lower price fix eventually thereafter is hardly evidence of the 'free market left to it's own devices' adjusting correctly. You'd have to be a total tool to believe these things.
The bottom line is that at least two of these companies (Samsung and Toshiba) were directly involved and found guilty of memory price fixing at least once in recent times by multiple courts, and neither the governmental remedies nor the supposed hand of the free market impacted them enough to stop them from doing it again with LCDs. Nothing will stop them and millions of other companies from continuing to screw the consumer in the future. Your premise fails in both theory and application.
One of these days I'm going to cut you into little pieces. - PF
What I feel would work is make it a mandantory 2 year sentence at Leavenworth Federal Prison - Low Security the first time around. Give em hard labor and personally fine them. Increase the penalty to 5 years in the medium security section and if they're found guilty a thrid time, life in maximum security with the real dangerous criminals. Furthermore, place them in with the general population instead of the damn country club. Also in regards to the 2nd and 3rd offenses, you punish their families too.
If you or I committed such crimes personally without a corporation that resulted in the same amount of monetary loss, we would not get such light treatment as a low security prison away from the hardened prison population. Neither should the executives who create these issues.
I cannot rightly support punishing their families. If family members are proven beyond a reasonable doubt to have committed a crime, then by all means prosecute them to the fullest extent of the law. Otherwise, advocating the punishing of innocents is much worse than any fraud the execs in question may have perpetrated. In fact it's quite likely that such innocents were as deceived by the perpetrators as anyone else. You should be ashamed for desiring such an outcome, sir. This is not honor or justice. It's a smack in the face to both. You lose the right to represent either honor or justice the moment you want to harm innocents who remain innocent until proven guilty. I cannot overstate how pathological such an urge actually is.
They have to prove nothing. That burden of proof is squarely on the shoulders of the prosecution should an accusation be made. You dishonor and shame yourself for advocating such a witch-hunt. It is beneath you. If it is not, it should be. If you are so easily corrupted by outrage then you are manifestly unfit to deal correctly with injustice, for you represent what you claim to be against.
If that stings a bit, it doesn't sting enough. How do you suppose people like those execs become so amoral and corrupt in the first place? It's because they see injustice like anyone else and eventually they become just like what they hate. Take this as a warning if there is any wisdom within you.
It is a miracle that curiosity survives formal education. - Einstein