price-fixing
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Sharp settles LCD price fixing dispute with Dell and others for $200 million
In an LCD panel price fixing tiff that's been raging on for what seems like time incarnate, Sharp has settled with Dell and two unnamed companies for $198.5 million to make it go away. Japanese panel makers like LG, Samsung and Toshiba are also defendants in the legal dragnet, and numerous fines and settlements totaling more than a billion dollars have already been paid out to the likes of AT&T and the US Department of Justice. This decision comes hot on the heels of an $87 million setback in court for Toshiba -- a ruling that may have taken the edge off of Sharp's defense.
Toshiba hit for $87 million in LCD price fixing verdict, maintains innocence
Toshiba decided not to settle when faced with allegations of price fixing, and now the company may have to pay the price. A jury handed down a verdict in the District Court for the Northern District of California today, hitting the company with $87 million in damages as part of a class action suit. The civil suit, separate from the criminal charges some of its alleged co-conspirators faced, wrapped today with the decision to award consumers $70 million and gave $17 million to manufacturers who purchased the company's panels. Toshiba may not actually have to pay up, however, thanks to settlements struck by others caught up in the same scandal, which could cover the damages. Regardless, the company maintains its innocence and actually plans to pursue "all available legal avenues" to reverse the decision. For more of Toshiba's response, check out the PR after the break.
E-book price fixing court date set for 2013
The Justice Department has been ready to take Apple to task over these recent allegations of e-book price fixing, and now a court date has been set: Apple will have to face the music almost a year from now, on June 3, 2013. Apple, Macmillan and the Penguin Group are the targets in the case, and while each of them has denied any formal price-fixing in the past, the court will do a little formal digging into those claims. A year is quite a long ways away, but stay tuned and we'll see exactly what case the Justice Department plans to lay out against Apple and the other publishing companies then. [via Engadget]
Report: HP's South Korean offices raided over alleged price fixing
Korea Times is a publication that isn't shy of the odd bold statement and today it's claiming that HP's South Korean offices were raided on suspicion of price-fixing deals made with IBM and Oracle. The country's Fair Trade Commission seized documents, computer records and questioned employees over alleged price-rigging on public-sector contracts. A company spokesperson said that the visit was routine, while FTC officers refused to comment about ongoing matters, but what is clear is that if any wrong-doing is found, the case will be turned over to prosecutors with the aim of commencing criminal proceedings for those responsible.
Apple says e-book price fixing charges 'simply not true,' Macmillan also responds
Not that we were expecting Apple and Macmillan to simply fess up and say, "you're right, totally tried to circumvent the free market," but both companies have come out swinging pretty hard against the allegations of price fixing. Apple has rejected the charges, calling them "simply not true." A company spokesman, Tom Neumayr, went so far as to tell Reuters that Cupertino was actually fostering competition by "breaking Amazon's monopolistic grip on the publishing industry." John Sargent, the CEO of Macmillan, defended his company's behavior in blog post, saying the publisher had done nothing illegal and that the concessions sought by the DOJ in settlement negotiations were "too onerous." It looks like the next step for both is to face off with the US government in court -- a daunting task, no matter how large your war chest.
Justice Department formally charges Apple, big five publishers in e-book price fixing case (update)
The Justice Department has formally decided to sue Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster over alleged e-book price-rigging. Apple and Macmillan have already denied any wrongdoing, saying that the agreements were enhancing competition in an industry previously dominated by Amazon. The case centers around a deal to switch to agency pricing, where the vendor takes a 30 percent cut of each sale rather than the wholesale model which allows stores to sell books at rock-bottom prices. It was previously believed that the publishers had cut back-room deals with the Government agency after bowing to pressure to withdraw Cupertino's "favored nation" status. If successful, the DoJ will allow Amazon and Barnes and Noble amongst others to return to the wholesale model to sell best-sellers at a loss, something that the big five are desperate to avoid, and will look to fight the battle in court. Update: The PDF of the DoJ's filing is now available online -- it makes for fascinating reading. Update 2: Bloomberg is now reporting that Simon & Schuster, Lagardère SCA's Hachette Book Group and HarperCollins have settled with the DoJ over unspecified terms. Hasty!
Samsung, LG and Pantech, among others, fined $40 million in Korean price fixing scam
The truth in advertising is that there is none -- it's mostly all smoke and mirrors. But sometimes those illusory promises have real-world criminal intent behind them, like this latest ruling from the Korean government's corporate regulator. In a decision handed down earlier today, that governing body found mobile phone makers LG, Samsung and Pantech, in addition to operators KT, SK Telecom and LG Upius guilty of price fixing. In what's been framed as a case of consumer fraud, the OEMs reportedly inflated the associated costs of handsets, which were then marketed with supposed discounts by the colluding carriers. Collectively the group's been ordered to pony up about 45.3 billion won (or $40.2 million) in fines, with the largest of those penalties belonging to Samsung at 14.2 billion won (about $12.6 million) and SK Telecom at 20.2 billion won (about $18 million). Adding further insult to this public injury is the FTC, which has taken the extra step of imposing sales restrictions that are intended to prevent the involved parties from committing future infractions. Check out the source below for the full scoop on this corporate back-scratching.
Samsung, Sharp, Hitachi and others settle LCD panel price fixing consumer class action for $539 million
'Tis the season for settling antitrust lawsuits, folks. Earlier this month, Sharp, Samsung, Hitachi and other LCD panel producers settled out their price fixing lawsuit with direct purchasers (read: TV and computer monitor manufacturers) for $388 million. So the story goes, the companies colluded to assure higher prices on LCDs sold between 1999 and 2006. Now, those same seven companies have settled up with indirect LCD purchasers -- aka the folks buying TVs and PCs -- to the tune of $539 million. Samsung, Sharp and Chimei are dishing out the lion's share of settlement dollars at $240 million, $115 million and $110 million, respectively, with the other companies kicking in between $2.8 and $39 million for their (allegedly) anti-competitive ways. Of course, the settlement isn't final until it receives the court's blessing, but you can see what the judge will likely be rubber-stamping at the source below.
Seiko Epson marks Boxing Day by announcing Nokia lawsuit settlement, 'extraordinary loss'
With Christmas behind us, it's time to get back to the real world. For Seiko Epson, that means some serious downer news. The company announced today that it has finally opted to settle with Nokia over antitrust lawsuits filed in the US and UK. The company will pay the Finnish handset maker a cool $80 million over the lawsuit, which stems from issues with LCD supply. That sum that will result in an "extraordinary loss" for Q3, according to Epson, though the company has opted not to adjust full-year earnings forecasts. Check Epson's press release after the break.
Dutch officials contemplate barring KPN, T-Mobile and Vodafone from spectrum auction
A spectrum auction looms on the horizon in the Netherlands, but three of the country's largest players may be excluded from participation. As you know, earlier this week, Dutch authorities raided the offices of KPN Mobile, T-Mobile Netherlands and Vodafone Netherlands in a price-fixing investigation. The Netherlands Competition Authority (NMa), which carried out the raid, stressed that its visit does not mean the operators are guilty of collusion or hint at the outcome of its investigation. Now, Dutch lawmakers and the country's Minister of Economic Affairs must come to a decision about the auction that's set to take place in the spring of 2012 -- which is likely to be well in advance of any final report from the NMa. One option tossed around has been to postpone the auction, though, as lawmakers point out, this could hinder the development in the mobile space and further limit competition. Alternately, had any of the named companies actually profited from the alleged collusion, there's a risk that these monies could be used to purchase additional spectrum and further extend their dominance. Those discussing the matter hope to move quickly, though it certainly seems difficult to make any decision of this magnitude lightly.
E-book publishers are now being investigated in the US, not just Europe
Just two days after the European Commission announced that it was investigating Apple and major international publishers for possible e-book price fixing, the US Justice Department has made it clear that it's also launching a probe into the possibility of "anticompetitive practices involving e-book sales." Although Justice Department officials didn't name which companies they're looking into, it's very likely that they're focusing on the same agreements between publishers and the major e-book platform owners -- either Apple or Amazon or both.
Sharp, Samsung and other LCD makers agree to pay $388 million in price fixing case
The companies still aren't admitting to any wrongdoing, but Sharp, Samsung, Chimei Innolux, LG and four other LCD manufacturers have now reached a settlement in a price fixing case that began back in 2007 with a class action lawsuit. That suit specifically covers LCD panels sold between 1999 and 2006, which the companies are alleged to have driven the price up on, in turn driving up the prices on products that use them. The group has agreed to pay a total of $388 to settle the claims, with Sharp shelling out the largest single amount at $105 million -- Samsung is next at $82.7 million, followed by Taiwan's largest display-maker, Chimei Innolux, at $78 million, and LG at $70 million. As Bloomberg notes, this follows a criminal price fixing case a couple of years back, in which LG and Sharp were forced to pay $585 million in fines.
T-Mobile, Vodafone and KPN raided in Dutch price-fixing probe
Details are pretty slim at the moment, but it appears that Vodafone, KPN and T-Mobile are among the companies that have been raided by Dutch regulators in a price-fixing investigation. The country's competition authorities, NMa, swept through the carriers' offices as part of a probe into alleged "cartel agreements" exposed by whistleblowers. All three of the companies have agreed to cooperate with the investigation and have denied wrong doing but, they're starting with a dark cloud of suspicion hanging over their heads already. It was only ten years ago that the same three mobile operators were fined for illegally coordinating on pricing and fees. Obviously, it's wrong to jump to conclusions, but what are the chances these huge corporations just haven't learned from their past mistakes?
Apple and major publishers investigated for e-book price fixing in Europe
The European Commission has opened a formal antitrust investigation into some of the world's largest publishers following a series of unannounced inspections back in March. Hachette Libre, Harper Collins, Simon & Schuster, Penguin and the German owner of Macmillan are all suspected of "anti-competitive practices" in the way they've sold e-books in Europe, "possibly with the help of Apple." Read on for the full press release.
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?
DRAM cartel settles with European Commission, will pay €331 million fine
When the U.S. Department of Justice brought an antitrust suit against PC memory manufacturers in 2002, the RAM you see above wasn't even a twinkle in an engineer's eye... but seven years after Micron revealed the existence of a price fixing cartel and four years after Samsung sent three executives to jail and paid a $300 million penalty, the European Commission has slapped DRAM manufacturers with yet another fine. Those who 'fessed up early were partially let off the hook, but Infineon and Hynix will shoulder €57 million and €51 million respectively, while Samsung owes Europe a cool €145 million for its role in the scandal. Of course, for a company that counts a quarterly $459 million in profit during an off year, we're talking about another slap on the wrist.
Dell joins dog pile, sues five LCD makers over price-fixing allegations
Looks like Dell is getting itself a membership in a club of which AT&T, Nokia, and the US Department of Justice are none too pleased to say they're members. The company has filed suit in a San Francisco court today against four Japanese LCD makers - Sharp, Hitachi, Toshiba, and Seiko Epson - and Taiwan-based HannStar. The crime at hand? None other than the much-chronicled LCD price fixing cartel. At least two of the aforementioned companies (Sharp and Hitachi) have already come forth to admit involvement and pay fines elsewhere, and now it looks like the troubles are still coming for them and others. If only there was some way the companies could band together to increase profits and help pay for these suits... oh, wait.
LCD price fixing investigation reaches $860 million in total fines, Chi Mei latest to 'fess up
It's not every day we get to cite an official US Department of Justice news release, so it's with a certain glee that we can announce the US taxpayer was last week enriched by another $220 million courtesy of the not-so-fine folks who swindled him out of that money in the first place. Joining the ignominious ranks of LG, Sharp, Hitachi and Chungwa Picture Tube, Taiwanese manufacturer Chi Mei is refunding the US state for the pecuniary impact of its collusive practices, which were primarily related to keeping prices artificially high and profits proportionately inflated. US companies directly affected by these ignoble activities include HP, Dell and Apple, but don't you worry, AT&T has already started the inter-corporation scuffle, with Nokia piling on for good measure. Man, it almost seems like crime doesn't pay.
Nokia sues LCD manufacturers for alleged price fixing (update: joins AT&T)
Price fixing is nothing new in the LCD panel business. Hell, collusion is pretty common across the entire consumer electronics industry though it's difficult (and costly) to prove. Now Nokia, the world's largest maker of cellphones, is suing a who's who of Asian LCD manufacturers alleging a ploy to fix prices on handset LCDs. The November 25th filing in the U.S. District Court for the Northern District of California, San Francisco division, names Samsung Electronics, LG Display, Sharp, Hitachi, and Chunghwa Picture Tubes as co-conspirators. Nokia, of course, is seeking cash and injunctive relief to remedy damages incurred and has the dubious honor of following another high-profile move launched against Apple just last month. With Nokia's high-margin smartphone sales waning against stiff competition, it's easy to understand why its execs would be miffed if they paid artificially high prices for panels considering the sheer volume of lower-priced handsets Nokia sells at razor thin margins. Update: Just dawned on us that this lawsuit (which we now know claims an 11 company cartel operating from "at least" January 1, 1996 until Dec 11, 2006) joins the AT&T action kicked off in October. Pile on! Nokia has also filed suit in the UK against both LCD and CRT makers.
Hitachi and Toshiba subpoenaed in DOJ optical drive price fixing probe
We kinda knew that there couldn't be any antitrust smoke without the fire of market collusion, and sure enough, Sony Optiarc has been joined on the naughty step by Hitachi-LG Data Storage and Toshiba Samsung Storage Technology Corp. As the names should tell you, these are joint ventures involving some of the world's biggest electronics manufacturers, whose American optical drive divisions appear to be under suspicion of fixing prices. We'd have expected Hitachi and LG to wise up after paying out fines for LCD price fixing recently, but when you look at Hitachi's stock trading up after this news -- with traders confident any forthcoming fines will be too small to dent the company's bottom line -- maybe "by hook or by crook" is actually a viable business plan?
