UPDATE:EU Sends Cartel Charges To Liquid Crystal Panel Makers
13 July 2009 - 11:29PM
Dow Jones News
The European Commission Monday said it has sent formal charges
to a number of companies supplying liquid crystal display panels on
suspicion that they have operated a cartel.
Dutch electronics maker Royal Philips Electronics NV (PHIA.AE)
confirmed it had received cartel charges from the European
Commission, alleging price fixing by one of its former units.
Liquid crystal panels are thin, flat monitors used in mobile
phones, televisions, computers, digital watches and pocket
calculators, the commission said.
The antitrust charges, which were sent out in May, formalize the
commission's investigation against the suspected cartel
participants. The commission wouldn't name the companies
involved.
Philips said the commission alleges that it is "jointly and
severally liable for anticompetitive behavior by LG Display" (LPL),
formerly known as LG Philips LCD Co., for the period that it held
joint control of the company, Philips..
Philips sold its remaining shareholding in LG Display in March
2009. The company said it plans to "vigorously" oppose the
commission's charges.
If found guilty the commission can fine the companies involved
up to 10% of their annual global sales In reality the fines are
usually much smaller than the maximum allowed, but the size of the
market affected and the length of the infringement contribute to
the final amount.
The European charges mirror closely a LCD cartel case, settled
in the U.S. in November 2008.
The U.S. Justice Department fined LG Display $400 million, after
the company pleaded guilty to the price fixing. Other companies
involved in the U.S. settlement were Sharp Corp. (6753.TO) and
Chunghwa Picture Tubes Ltd (2475.TW).
Commenting on the commission's charges, LG Display said it's in
the midst of finding the details of the charges, while a Sharp
spokeswoman said the company hadn't received any charges from the
commission. Samsung C&T Corp.(000830.SE) declined to
comment.
-By Peppi Kiviniemi, Dow Jones Newswires; +3227411483;
peppi.kiviniemi@dowjones.com