Regional News
SEOUL—The South Korea Fair Trade Commission on Sunday said it fined six Asian makers of liquid crystal display screens a total of 194 billion won ($175.7 million) for participating in a price-fixing cartel for more than five years.
The antitrust regulator said in a prepared statement that South Korean companies Samsung Electronics Co. and LG Display Co., and Taiwan-based companies AU Optronics Corp., Chimei Innolux Corp., Chunghwa Picture Tubes and HannStar Display Corp. met more than once a month in Taiwan to agree on prices for flat panels used for computers, notebook personal computers, and televisions, and to share other private and confidential information.
The cartel operated from September 2001 to December 2006, the commission said, with the LCD makers holding at least about 200 gatherings during that period.
The regulatory body fined Samsung Electronics and LG Display, including their two overseas units in Japan and Taiwan, 97.29 billion won and 65.52 billion won, respectively. South Korea’s FTC also fined AU Optronics 28.53 billion won, Chimei Innolux 1.55 billion won, Chunghwa 290 million won and HannStar 870 million won.
The fines by the South Korea regulator—the largest fine it has ever imposed for an international cartel case—came a few years after several major Asian LCD makers, including LG, were fined and executives were imprisoned after a similar U.S. probe. In December, the European Commission also fined six Asian makers of LCD screens a total of €649 million ($918 million) for operating for almost five years as a cartel.
“The global LCD makers, which hold about a combined 80% global LCD market share, were engaged in a price-fixing cartel for products, such as computer monitors, notebook PCs, and TVs, and it has hurt our domestic consumers,” the commission said.
“The LCD firms knew their actions were illegal and they all agreed to conceal their gatherings and the information they shared.”
In setting the fines, the commission said the final penalties may be adjusted, as it will take into account the level of sales the companies made through the cartel.
Samsung, the world’s largest LCD maker by sales, said in a statement that it respects the FTC’s decision and will continue abide by the fair-trade law.
LG Display, the world’s second-largest LCD maker, said in a separate statement Sunday that the actual amount that the company must pay is “significantly” smaller, due to 50% reduction under the leniency program and other mitigating factors. The company added it objects to the FTC’s decision and will appeal to the Seoul High Court as the deadline to impose any fine on the flat-panel maker expired in July.
“Under the statute of limitations, the FTC may not impose any fine more than five years past any leniency application,” said LG Display in a statement. It also added that the latest decision won’t have any negative impact on its business operations or its relationship with its partners.
AU Optronics said it will carefully review the official document once it receives it from the FTC and said it will “take appropriate action” accordingly.
Representatives of Chimei Innolux, Chunghwa Picture and HannStar didn’t immediately respond to requests for comment.
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By: Jung-Ah Lee
Source: The Wall Street Journal, October 31, 2011
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