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HannStar Display shells out $30m to settle LCD price fixing case
Another day, another company pleading guilty to their role in a massive global price-fixing conspiracy surrounding the MSRP of LCDs. The Taiwan-based HannStar Display agreed (grudgingly, we surmise) this week to cough up a whopping $30 million for its role in the scheme, marking the seventh company to "plead or agree to plead guilty as a result of the department's investigation into the LCD industry." All told, the US Department of Justice has seen some $890 million paid out and 17 executives charged, with HannStar in particular being pegged for violating the Sherman Act during its participation in the conspiracy from September 2001 to January 2006. So, anyone up for being lucky number eight?
DOJ reportedly expands Apple probe
The New York Post is reporting this week that the US Department of Justice (DOJ) is expanding its investigation of Apple in regards to iTunes and changes to the beta iPhone OS 4 SDK. As for iTunes, Apple is accused of allegedly threatening to withhold their typical promotional activities from labels who continued to offer exclusives to Amazon via their Daily Deals campaign. Additionally, the DOJ and Federal Trade Commission (FTC) are negotiating which of them will launch an inquiry into a clause in the iPhone OS 4 SDK that bans the porting of software originally written for Adobe's Flash, Sun's Java or Microsoft's Silverlight/Mono to the iPhone OS. The Post cites "one Hollywood industry source" in their article, so you're free to guess who that might be. In the meantime, we'll follow this story as it develops. Here's hoping justice -- and not sour grapes -- is served. [Via Edible Apple]
DoJ's inquiry at Apple purportedly expanding beyond iTunes practices
Take this for whatever it's worth (which isn't a whole heck of a lot without any official confirmation from any of the parties involved), but the New York Post has it that the Justice Department's inquiry into Apple's iTunes practices may in fact be growing. 'Course, it's not exactly surprising to hear that authorities are now investigating every nook and cranny of Apple's tactics thanks to Steve Jobs' public thrashing of Flash and his sly insistence that the world shun Adobe while hugging HTML5, but we've still yet to hear from the DoJ and Apple about what exactly is going on within Cupertino. At any rate, the Post notes that a number of "sources" have confirmed that the inquiry is growing, most notably to include "how the iPhone and iPad maker does business with media outfits in areas beyond music." We'd heard whispers that things may be getting just a bit too dictator-ish in the developers Ts and Cs, and now it seems that the DoJ is "asking questions about the terms that Apple lays out for computer programmers who want to develop apps for the iPad." It'll be interesting to see how all of this plays out, but we can bet devs (and end-users, frankly) are hoping and praying for less restrictions in the future.
US Department of Justice to investigate Apple over iTunes
The New York Times is reporting that an "early stage" investigation at the US Department of Justice (DoJ) is looking at whether Apple is using its considerable position in the online music sales business to hinder Amazon's efforts. Specifically, the probe will focus on whether Apple unfairly leveraged iTunes to deny Amazon's MP3 store exclusive access to songs. It's been alleged that Apple threatened to withhold their typical promotional activities from labels who continued to offer exclusives to Amazon. Those songs would still see sales in iTunes, of course, but significantly less without Apple's promotional efforts behind them. Back in March, Billboard reported that Apple's iTunes team had tried to talk publishers out of participating in Amazon's low-priced, exclusive "Daily Deals" promotions, which often motivated labels to offer Amazon first dibs on major releases at a significant discount. This allegedly prompted Apple to threaten to pull advertising if participation continued. Several labels supposedly relented and abandoned the Amazon deal as a result. You'll remember that the DoJ also recently began an inquiry into a clause in the iPhone OS 4 SDK that bans the porting of software originally written for Adobe's Flash, Sun's Java or Microsoft's Silverlight/Mono to the iPhone OS. What a mess! [Hat tip to Ars & Electronista]
If you throw away your console, the terrorists have won
In one of those fun, yet uncomfortable, instances where real life and video games interact, Fox News has uncovered a dusty (and old, very old) PlayStation controller during a raid of an Afghanistani farmhouse, which doubled up as a munitions depository. Lying there, in among rockets, grenades, plastic explosives and tank shells, was this humble blue-hued PlayStation appendage, which we're told can be rewired to act as a remote detonator. Should you question just how seriously the US government is taking this growing tide of console-aided terrorism, below you'll find a press release (seriously, a state-issued press release) detailing the detainment of four men in connection with the illegal transportation of digital cameras and PlayStation 2s to a "terrorist entity" in Paraguay. If convicted of the most egregious charge, they face 20 years in prison... for contraband consoles. Face, meet palm.
ESA applauds formation of Dept. of Justice Task Force on Intellectual Property
With last week's announcement by the US Department of Justice of the formation of the Department of Justice Task Force on Intellectual Property, the ESA this weekend released a statement celebrating the DoJ's decision. "We applaud the Justice Department for its commitment to protecting intellectual property and commend the Attorney General for his leadership," said ESA president and CEO Michael Gallagher. "Intellectual property is the lifeblood and backbone of entertainment software," Gallagher continued. "... consumers benefit with the lower cost, high-quality and more diverse title offerings that are made possible by strong measures protecting the creative works of our industry's artists." Intellectual property rights and the policing of them has been a point of contention with distributed media (from film to games to books, and everything in between) and the publishers of said media since the invention of the printing press (and likely before that!), so it'll be especially interesting to see how the US government handles such a hefty issue in the burgeoning digital world. As strict opponents of game piracy ourselves, we wish them the best of luck. They're going to need it.
Sony Optiarc garners unwanted attention from DOJ for possible Blu-ray or DVD price fixing
In a filing with the Tokyo Stock Exchange this morning, Sony has revealed a request for information from the US Department of Justice regarding its optical drive production arm, Sony Optiarc. While the same filing indicates the Japanese giant's belief that this information gathering is part of a wider investigation into competition in the optical drive market, we've yet to hear of any other companies facing the same request. If you were feeling disgruntled with the pace of Blu-ray price drops, this might just be your moment of vindication... or it could be a storm in a teacup. There's really not enough information to tell either way right now, but if we know anything about the DOJ, it's that it loves shaking down naughty corporations. We'll keep a careful eye on this as it develops.
Levinson resigns from Google, Apple ties broken
It's the end of an era for the relationship between Google and Apple -- Google has announced that Dr. Arthur Levinson has resigned from its board of directors, meaning that the last common member between the boards of the two companies has now "chosen a side," so to speak. I doubt it was that serious, but you never know: the Department of Justice had announced that they were looking into the connections between the two boards, with both former Apple boardmember and Google CEO Eric Schimidt being one link, and Levinson being the other. Not that the DoJ was really breathing down any necks (they'd only requested documents, and there were no signs at all, other than, you know, Google Maps being an original iPhone application, that there was any collusion between the two companies). But it is possible that between them, they decided to play it safe, and with the two companies getting closer and closer to competition every day (with Google's Android OS and the continuing saga of Chrome going on), this is probably for the better. Levinson and Schmidt, meanwhile, will both still continue to make millions of dollars anyway. So they have that going for them. Which is nice.
Amazon, Microsoft and Yahoo unite against Google Books
Microsoft, its new pet dog Yahoo, and Amazon have decided to join together in the soon to be formed Open Book Alliance. You might expect this to be a revolutionary new collaborative effort at delivering the written word in a way that makes Google Books pale into insignificance, but you would, of course, be wrong. Far from trying to compete with Google, The OBA is set to act as the collective mouthpiece for all those opposed to Google's recent $125 million settlement deal with book publishers and authors. With the US Department of Justice already investigating antitrust concerns relating to the case, the other big dogs just couldn't restrain themselves from coming together for a united whinge. Should the settlement be cleared, it will permit Google non-exclusive rights to orphan works (those without an established writer) and will give it a 30 per cent cut of books sold via Google Books, both things that authors have agreed to. So what's there to moan about, fellas -- we all trust Google to do the right thing, right?
Palm's Colligan rebuffs Steve Jobs' 'likely illegal' plea to stop hiring from Apple
Imagine the scene two years ago, August 2007 to be precise. Palm was busy preparing to launch its Foleo and the OS that would save Palm was still expected to be coming from ACCESS. In fact, things were looking so bad for Palm in August that we penned an intervention letter that then CEO Ed Colligan responded to. Apple, for its part, was still enjoying the glow of the golden halo rising above its iPhone launched just over a month prior with the help of 2% of Palm's hired workforce, according to Bloomberg. Oh, and Apple had just lost Jon Rubinstein, the man leading its iPod division, to Palm.Now Bloomberg is reporting that Steve Jobs approached Palm's Ed Colligan in August 2007 with a proposal to refrain from hiring each other's staff (read: quit poaching our employees, Ed!). Colligan refused, saying,Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal.Meeeow.
Department of Justice casually looking into abuses of power by big carriers?
Word on the street has it that the US Department of Justice has started informally looking into whether top carriers have gotten all antitrust-y on us, specifically investigating hardware exclusives and restrictions on the services third parties can offer on the network (open access, anyone?). The carriers potentially being called into question here -- most likely Verizon and AT&T, seeing how they're the largest by a long shot and have both made recent acquisitions to beef up their footprints and positions -- say that they've received no notices of investigation, so if this is really happening, it's still in the earliest stages. Beefs over handset locking and exclusivity are nothing new and have come from governments and competitors alike -- but considering the price flexibility they ultimately give carriers on the front end, they've still got a place in the hearts and minds of consumers who put a premium on (perceived) value and instant gratification. It remains to be seen what'll happen to pricing when you can't promise your carrier you won't run off with its subsidized gear the next day, but we can't imagine it'll be good.
Hitachi also admits to LCD price fixing, will pay $31m fine
Funding that stimulus package just got ever-so-slightly easier -- Hitachi is the latest company to fess up to LCD price fixing, and as part of its deal with the US Department of Justice, it's paying a $31m fine. The company has specifically admitted to fixing the prices on panels sold to Dell from 2001 to 2004, and while no Hitachi execs are due to join their comrades from LG and Chungwha Picture Tubes just yet, we'd encourage them to book their vacations now, since the DOJ seems like it's staying on the warpath.
AT&T reportedly eyeing post-merger Verizon Wireless assets
As you may recall, one of the requirements that Verizon had to agree with in order to complete its little acquisition of Alltel was that it must offload some $3 billion in wireless assets to avoid becoming too monolithic, and it looks like there's already a number of bidders angling for a piece of the action. The biggest of those, by far, is AT&T, which is apparently looking to pick up as big a chunk of the assets as it is able to and, according to The Wall Street Journal, it's in a good position to do just that. Other interested parties reportedly include a joint bid from the Carlyle Group and Kohlberg Kravis & Roberts & Co, a separate bid from Providence Equity Partners LLC, and at least one unnamed cable provider. Any of those bids, however, would still be subject to approval by the Department of Justice, with AT&T sure to draw the most scrutiny of the lot.[Via The Wall Street Journal]
Microsoft calls Google out on Windows search integration claim
As the two giants edge closer onto each of their respective core markets, the tension gets more pronounced: just last week Google pointed to the integration of search into Windows Vista, claiming to the Dept. of Justice that it discourages people from using other solutions (like Google's Desktop Search) and violates the company's agreement with the Government. This week, Steve Ballmer called the complaint "baseless," and said that the company is in complete compliance with the agreements it has with the U.S. Government. In any case, Microsoft is fighting a losing battle, with Google able to use the DOJ as a router for its claims, and Microsoft then forced to defend itself on two fronts. Maybe it might be a good time for Microsoft to consider a policy of opening its platforms a little bit: it's not like the opponent (this time around) is going to go away anytime soon.
LCD makers under price-fixing investigation
In light of our recent post about another Samsung exec falling on his sword in the DRAM price-fixing scandal and the current DoJ scrutiny of the graphics card industry, commetor, otakucode, reminds us about the developing LCD antitrust story. (Maybe this will take our minds off the SRAM incident.)LCD screens are becoming commodities, being produced for phones, TVs, computers, game systems, MP3 players, and many more devices. With the screens being so common, their cost -- and profit -- naturally falls, so what's a little collusion among friends?LG.Philips, Samsung, Sharp, and others have been contacted by authorities in the U.S., Europe, Japan, and/or Korea about working together to keep LCD prices high; so far, the investigation relates to devices from 2003 and 2004.We always thought LCDs were expensive, especially a few years ago. We're interested in finding out if we're just miserly or if the prices have been artificially high. Probably both.Read:LCD Price-Fixing Investigation Goes GlobalUPDATE: Regulatory Probe of LCD Market Widens[Thanks, otakucode!]
The fix is in: Another Samsung exec falls in DRAM conspiracy
The fifth Samsung executive has agreed to a 10-month prison sentence, pleading guilty to conspiring with other companies to fix DRAM prices. Since 2003, the ongoing U.S. Department of Justice investigation has charged four vendors in the scandal. While Samsung already pleaded guilty and was fined $300 million a year ago, this latest plea relates to OEM price-fixing over 2001 and 2002; if you bought a computer from Dell, HP, Gateway, or Apple, those companies likely passed the extra costs on to you.Once a product becomes a commodity -- like RAM -- the pressure for collusion seems to rise because price is the main product difference; all vendors lose in a price war. We don't think that video cards and GPUs are interchangeable like RAM, but is the graphic industry using similar tricks?See also:Uh-oh! Sony part of DoJ's inquiry into SRAM salesFeds tracking AMD/ATI, Nvidia in antitrust probe
Uh-oh! Sony part of DoJ's inquiry into SRAM sales
It's not just the bloggers, the journalists, the Wall Street suits, and the battery burn victims that are down on Sony these days ... Alberto Gonzalez and the legal eagles down at the Department of Justice have decided to pile on. What are they mad about? Hint: it's not exploding batteries or a hefty price tag.Nope, apparently Sony is part of an industry-wide inquiry into sales of SRAM. According to a Sony spokesman, even though they don't manufacture the SRAM themselves, they sold $27.7 million worth of it in 2005. Sony responded to the inquiry simply, stating, "Sony intends to cooperate fully with the DoJ in what appears to be an industry-wide inquiry." How else could this be ugly? Well, according to Howstuffworks.com, "The [PS3's] SPEs each come loaded with 256 KB SRAM. This high-speed memory helps each SPE crunch numbers quickly."It's unclear what the inquiry is related to, but the AP reports that, "a separate Justice Department investigation into price-fixing among DRAM companies has so far resulted in more than a dozen charges against individuals and more than $731 million in fines against" various RAM manufacturers. According to the website for a pending class action lawsuit, "several marketers and sellers of SRAM formed a cartel and conspired to reverse the steady decline of SRAM prices that occurred from 1994-97. The conspiracy was successful. Beginning in 1998, SRAM prices increased dramatically and continued to increase through 2001. Even when SRAM prices dipped in 2002, the cartel's conspiracy was still able to keep SRAM prices at an artificially high level. By engaging in its illegal, anti-competitive activity, the cartel caused purchasers of SRAM to pay supra-competitive prices."Uh-oh.[Thanks to everyone that sent this in!]
US DOJ investigates Mitsubishi's prior SRAM biz
It's been several years since Mitsubishi bailed out of the crowded SRAM business, but apparently the US Department of Justice still has a bone to pick with the mega corporation. After handing off its SRAM operations to Renesas -- "a joint venture founded by Mitsubishi and Hitachi" in 2003 -- the firm had seemingly bypassed the barrage of DOJ inquisitions which pinned Samsung with a $300 million fine and led the Korean FTC to examine the uber-low NAND memory prices that only Apple seemed to be receiving. Now the anti-trust agency has tagged its third victim regarding the US SRAM market, but has yet to explain what issue(s) piqued their interest. Mitsubishi, however, is seemingly already hanging its head in shame, as it made statements insinuating that unforeseen penalties could be faced, and noted that the probe could lead to "a possible adverse affect on the company's future business performance." While we aren't exactly sure what skeletons may still be in Mitsu's closet, we've certainly been forewarned that potentially harmful discoveries could be imminent.
