lcd panel price fixing made in china

Also included in the fines for price fixing were four Taiwanese firms: Chi Mei Optoelectronics, AU Optronics, Chunghwa Picture Tubes Ltd., and HannStar Display. The total fine levied against all six companies reached $56 million.

The display makers were accused of fixing prices on LCD panels that they sold to Chinese TV makers from 2001 to 2006. From the total amount of fines, $27 million was paid to nine TV makers as a refund, officials told Yonhap News.

"From 2001 to 2006, six companies involved held a total of 53 rounds of "Crystal Conferences," claiming that they exchange information on the global LCD panel market," an official with the National Development and Reform Commission said, according to Yonhap News. "Those involved turned out to have negotiated prices or manipulated prices, hampering the legitimate rights and interests of other parties and consumers."

The decision released on Jan. 4, 2013 in China by the Chinese National Development and Reform Commission concerns LCD panel price-fixing between 2001 and 2006. We do not expect this decision to impact our relationship with customers or panel sales. LG Display remains committed to operating with full transparency in providing the best quality products and services to its global customers.

The EC found that the companies had formed two cartels, each designed to fix prices, limit production, or share markets and customers between them. One cartel handled cathode-ray tubes for TVs, while the other took care of computer monitors.

The price fixing ring came to light as a result of a US Justice Department investigation and has led other governments and trade bodies to punish the six firms. In 2010 the European Commission fined the six firms 649m euros (£527m) for operating the cartel.

The NDRC fine involves the firms repaying all the profits they made in China as a result of price fixing (208m yuan, £21m) as well as an additional penalty payment of 144m yuan (£14m).

"The enterprises involved in the price monopoly acts have harmed the legitimate rights and interests of the domestic color TV enterprises and consumers," said the NDRC in a statement.

A total of six companies have been accused of holding 53 secretive meetings in Taiwan and South Korea to agree on prices for LCD panels, according to Bloomberg. China"s National Development and Reform Commission also fined Chunghwa Picture Tubes Ltd. and HannStar Display Corp. in the price fixing scheme.

The commission reportedly said that the companies, which mainly build LCD panels for TVs, also shared other confidential information between them. It also revealed that the companies confessed to their crimes.

For its part, Samsung Display Co. said it ceased participation in price fixing at the end of 2005. Though the company is a fierce rival, Samsung remains a key supplier to Apple, and was initially the only manufacturer of Retina displays for the third-generation iPad.

LG, Samsung and Chunghwa were also hit with $585 million in fines in 2008 when all three companies pleaded guilty to price fixing in the LCD display market. At the time it was revealed that Sharp"s role in the matter affected Apple from September 2005 to December 2006, when Sharp supplied iPod displays.

China has punished six companies, including Samsung and LG, for manipulating LCD panel prices in the country, and ordered them to pay a total of US$56 million in fines.

Samsung, LG, and four Taiwanese companies "conspired" in a price fixing scheme facilitated through monthly meetings between 2001 to 2006, said China"s National Development and Reform Commission (NDRC) on Friday. During that period, the six companies held 53 meetings in Taiwan and South Korea to make agreements on LCD panel pricing.

Through the price-fixing scheme, the six companies sold 5.1 million panels in China, the most coming from LG, and Taiwanese LCD supplier Chimei Innolux. This amounted to 208 million yuan (US$33 million) in revenue. NDRC didn"t state which LG or Samsung company was fined.

China"s NDRC investigated the matter after receiving complaints of the price fixing scheme since December 2006. The three other Taiwanese firms involved in the alleged price-fixing include AU Optronics, Chunghwa Picture Tubes, and HannStar Display.

Regulators across the world have also investigated the companies for manipulating LCD panel prices and fined them for breaking anti-competition laws. In Dec. 2010, the European Commission fined Samsung Electronics, LG Display and the four Taiwanese companies for a total of about $850 million, though Samsung received immunity from fines for bringing the cartel to the notice of the commission and providing information.

BEIJING: China today penalised Samsung and LG, along with four firms from Taiwan for manipulating the prices of liquid crystal display (LCD) panels in the Chinese mainland.

Samsung and LG, two leading LCD panel makers of the Republic of Korea, as well as Chi Mei Optoelectronics, AU Optronics, Chunghwa Picture Tubes and HannStar Display from Taiwan have been fined a total of 353 million yuan (USD 56 million) for price-rigging between 2001 and 2006, the National Development and Reform Commission(NDRC), the price regulator said.

The commission said that it launched an investigation after receiving multiple complaints since December 2006 about the price-rigging acts involving the six companies, according to report by state run Xinhua news agency.

During the investigation, the firms confessed that they held 53 meetings between 2001 and 2006 to fix the prices of flat panels supplied to the Chinese mainland market.

The six companies have reimbursed 172 million yuan that they illegally seized from Chinese TV manufacturers, and they also vowed to extend the free warranty period of their LCD panels for TV producers in the Chinese mainland from 18 months to 36 months, the NDRC added.

China joined an international crackdown on price-fixing in the flat-screen electronics industry by fining Samsung, LG and four other Taiwanese firms $57 million US for anti-competitive behaviour.

It"s believed that at the time, the companies were meeting on a quarterly basis to set prices for components. Supply of components for screens far outpaced demand at the time, but the companies were able to maintain high prices by working together at the time, and that kept prices higher for consumers down the line.

The fines pale in comparison to the $3 billion in fines that North American and European regulators have already slapped the industry with for similar behaviour. As much as $74 billion worth of electronics had their ultimate price affected by the practice, U.S. prosecutors say. U.S. courts have already sentenced 12 executives to prison time for their role in the matter.

After the EU fined companies in 2010, a major Chi Mei shareholder, Terry Gou, said the price-fixing was led by Samsung and LG, the biggest and second-biggest display panel manufacturers, respectively. Gou is chairman of Hon Hai Precision Industry Co., which assembles electronics for Apple Inc. and other companies, but does not make display screens.

In a statement, Samsung said it doesn"t dispute the Chinese government"s move. The company will "strengthen training" so employees do not engage in price-fixing in the future, the official said.

BEIJING, China - China fined South Korean and Taiwanese makers of LCD display screens $56 million on Friday for price-fixing, joining the United States and Europe in a crackdown on the industry.

Suppliers have been hit by American and European regulators with penalties totalling more than $3 billion for colluding to push up slumping prices of display screens in 2001-06. U.S. courts have sentenced 12 executives to prison.

Envoys from LG Display, Samsung Display and the Taiwanese suppliers met every quarter in 2001-06 to set prices of screens at a time when supply outstripped demand, pushing down market prices, according to Western and Chinese regulators. Samsung owns 85 per cent of Samsung Display, the biggest display manufacturer. LG Display is a publicly traded company in which LG owns a 38 per cent stake.

After the EU fined companies in 2010, a major Chi Mei shareholder, Terry Gou, said price-fixing was led by Samsung Display and LG Display, the second-biggest panel manufacturer. Gou is chairman of Hon Hai Precision Industry Co., which assembles electronics for Apple Inc. and other companies but does not make display screens.

The mainland on Friday joined an international crackdown on a price fixing conspiracy involving several suppliers of LCD screens, levying penalties of 353 million yuan ($56.6 million) on Samsung, LG and four Taiwan companies.

The settlement, though less punitive in the eyes of analysts, was considered a landmark move as it was the first time the country had punished overseas firms for price fixing.

Envoys from LG Display, Samsung Display and the Taiwan-based suppliers met every quarter in 2001-06 to set prices of screens when supply outstripped demand, pushing down market prices, according to regulators.

The display makers "manipulated market prices and damaged the lawful interests of other companies and consumers," the mainland"s major economic policymaking body, the National Development and Reform Commission, said in a statement.

US prosecutors say some $74 billion in global sales of LCDs were affected by the conspiracy. Customers included Apple, Dell and other producers of TVs, notebook computers and other electronics.

Lu Renbo, deputy secretary-general of China Electronic Chamber of Commerce, said mainland TV manufacturers were the biggest victims of the price fixing.

"LCD screens account for about 80 percent of the overall costs of color television sets. The mainland produced about half of the world"s televisions but at that time all screens were imported," said Lu.

The six suppliers were fined for allegedly getting involved in driving up prices for 5.14 million LCD panels sold by the companies between 2001 and 2006, overcharging the flat-screen television manufacturers.

Taiwan"s AU Optronics was ordered to pay $500 million by a US court in September, one of the largest anti-trust settlements. A US court said in December 2011 that Samsung, Sharp and six other makers of panels for TVs and computers agreed to pay $388 million to settle price fixing claims by direct purchasers, according to Bloomberg.

Suppliers have already been hit by US and European regulators with penalties totaling more than $3 billion for colluding to push up slumping prices of display screens in 2001-06, which raised costs for electronics manufacturers.

Participating in bilateral meetings, conversations, and communications in Japan and the United States to discuss the prices of TFT-LCD panels to be sold to Dell, Apple and Motorola;

Agreeing during those bilateral meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels to Dell, Apple and Motorola;

Exchanging information on sales of TFT-LCD panels to be sold to Dell, Apple and Motorola, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

BEIJING, Jan. 4 (Xinhua) -- Samsung, LG and four Taiwanese firms have been fined heavily for price-fixing of liquid crystal display (LCD) panels on the Chinese mainland.

These companies have been ordered to pay 144 million yuan in fines and return 172 million yuan of extra payment to Chinese mainland buyers. The government also confiscated 36.75 million yuan of their illegal gains, China"s top price regulator said Friday.

The six companies were fined for price-rigging on the Chinese mainland between 2001 and 2006, according to the National Development and Reform Commission (NDRC).

During the investigation, the firms confessed that they held 53 meetings between 2001 and 2006 to fix the prices of flat panels supplied to the Chinese mainland market. This harmed the interests of both other LCD panel suppliers and consumers, according to the NDRC.

LCD panels accounted for about 80 percent of the production cost of color TVs during the 2001-2006 period. More recently, the rate is around 70 percent, according to NDRC data.

These companies have been ordered to pay 144 million yuan in fines and return 172 million yuan of extra payment to Chinese mainland buyers. The government also confiscated 36.75 million yuan of their illegal gains, China’s top price regulator said Friday.

The six companies were fined for price-rigging on the Chinese mainland between 2001 and 2006, according to the National Development and Reform Commission (NDRC).

During the investigation, the firms confessed that they held 53 meetings between 2001 and 2006 to fix the prices of flat panels supplied to the Chinese mainland market. This harmed the interests of both other LCD panel suppliers and consumers, according to the NDRC.

LCD panels accounted for about 80 percent of the production cost of color TVs during the 2001-2006 period. More recently, the rate is around 70 percent, according to NDRC data.

The six companies also vowed to extend the free warranty period of their LCD panels for TV producers on the Chinese mainland from 18 months to 36 months, which could save manufacturers 395 million yuan each year on maintenance costs, the NDRC added.

Up until recent years, TV manufacturers on the mainland have suffered from their reliance on LCD panel imports, as the core technology of LCD production has been kept among LCD panel suppliers in South Korea, Japan and Taiwan.

TV producers on the mainland have always hoped for fair treatment from overseas LCD panel suppliers, whose products now cover nearly half of the global LCD TV output, said Bai.

“All the domestic TV makers could do nothing but accept the prices those giants fixed, which impacts the industry,” said a user with the screen name “Fanrenyanzhongkanshjie”.

OLYMPIA — Beginning next week, checks will be in the mail for consumers affected by an elaborate price-fixing conspiracy by LCD manufacturers, Attorney General Bob Ferguson announced today. A total of $41.1 million is on its way to 24,632 consumers and businesses in all 39 counties.

For eight years, consumers in Washington and throughout the world were significantly overcharged every time they bought a product with a liquid crystal display, or LCD, screen because of a conspiracy by the world’s largest LCD manufacturers.

According to the AG’s complaint filed in 2010, LCD manufacturers participated in cartel meetings in which they exchanged price information and agreed to fix prices and manipulate the supply of LCD panels to artificially increase prices.

The earliest meeting occurred over a round of golf in Taiwan in 1998, where the LCD manufacturers met to discuss concerns over increased competition in the industry.

This led to regular gatherings, known as “crystal meetings,” where the LCD manufacturers met to fix the prices on LCD panel prices by exchanging confidential price and shipment information.

In May 2015, AG Ferguson recovered $63 million from the nine LCD manufacturers who participated in the price-fixing scheme. A total of $41.1 million will be returned to consumers, another $6 million will go to state agencies affected by the scheme, and the remainder will cover the costs of the case and fund antitrust efforts in Washington.

Checks will be mailed out within the next week, and should arrive with claimants in the next few weeks. People with questions about their claims should contact AB Data at 866-778-9468 or walcdsettlement@abdata.com.

China’s National Development and Reform Commission (“NDRC”) has imposed a heavy penalty of total RMB 353 million yuan against six companies for the monopolistic behavior of price-fixing on liquid crystal display (“LCD”) panel in mainland China as announced on January 4, 2013. The six companies include Samsung, LG, as well as four firms from Taiwan——Chi Mei Optoelectronics, AU Optronics, Chunghwa Picture Tubes and HannStar Display. What worth noting is that it is the first time for NDRC to issue a penalty against foreign firms for monopolistic behavior which is also the heaviest penalty ever on price-related violations by Chinese antitrust enforcement authority until now.

NDRC has received multiple complains on the price-related monopolistic behavior of above companies from domestic enterprises since December 2006. As found by NDRC through the investigation, Samsung, LG and other four Taiwanese companies "conspired" in a price fixing scheme through monthly meetings (“crystal meetings”) from 2001 to 2006. During the period, the six companies held 53 crystal meetings in Taiwan and South Korea to exchange information related to price and make agreements on LCD panel pricing which caused huge damage on other undertakings and customers.

As disclosed by NDRC, the total amount of involved LCD panels sold by six companies reaches up to 5.1462 million units. Samsung sold 0.8265 million units, LG sold 1.927 million units, Taiwan’s Chi Mei Optoelectronics sold 1.5689 million units, AU Optronics sold 0.5494 million units, Chunghwa Picture Tubes sold 0.2706 million units and HannStar Display sold 3,800 units. The total illegal gains arising from concerning illegal activities is amounted to be RMB 208 million yuan. NDRC imposed the penalty against above monopolistic behaviors based on the Price Law of China in the end. The thing is, the involved behaviors by the companies belong to pricing monopolistic behaviors so that the case falls under the governing scope of Anti-Monopoly Law of China (“AML”). As provided in Article 13 of AML, “competing undertakings are prohibited from concluding the following monopoly agreements: (1) fixing or changing commodity prices;……” But the Price Law rather than AML was applicable in this case, because the AML went into effect in 2008 while the illegal behaviors had happened from 2001 to 2006. According to the principle of “Law of non-retroactivity” and “application of the old law with the exception of a less punishment in the new law”, the AML shall not be applied in this case.

For one thing, both U.S. and EU fined the involved companies in accordance with their anti-monopoly law in which the standards of penalty are based on the percentage of the amount of sales. So the amount of penalty is quite huge. While the penalty in China is based on the illegal gains by the companies according to the Price Law, the amount of penalty is relatively small. In another word, if the penalty in China is based on the amount of sales, it will be much more heavily. Article 46 of AML provides that where an undertaking, in violation of the provisions of this Law, concludes and implements a monopoly agreement, the authority for enforcement of the Anti-monopoly Law shall instruct it to discontinue the violation, confiscate its unlawful gains, and, in addition, impose on it a fine of not less than one percent but not more than 10 percent of its sales achieved in the previous year. If such monopoly agreement has not been implemented, it may be fined not more than RMB 500,000 yuan.