The European Commission has fined seven major electronics manufacturers a record €1.47 billion ($1.92 billion), after discovering evidence of fixing the prices of cathode-ray tubes (CRT) used in older models of televisions and PC monitors, over a period of 10 years.
Philips, Samsung SDI, LG Electronics, Technicolor (formerly known as Thomson), Panasonic, MTPD (currently owned by Panasonic), Toshiba, and Chungwa have joined together in the 1996-2006 period in two groups to restrict the production and distribution of customers in order to increase the prices of cathode ray tubes, the European Union executive said on Wednesday, reports the Financial Times.
“The cartels have shown the worst kind of globl anti-competitive business which strictly prohibited companies in Europe,”
said Joaquin Almunia, European Commission (EC) Vice-President in charge of competition policy. Cathode ray tubes price were at that time 70% of the screen’s price, showed Almunia.
The combined fine of €1.47 billion is the most severe penalty ever imposed by the European Commission in a single decision. Regulators in Europe and the United States have already applied several significant fines to producers of flat panel displays, engaged in similar price-fixing activities in the period 2001-2006.
Flat panel technology began to replace cathode-ray tubes for television screens and computer monitors around the year 2000.
Chungwha Picture Tube, a Taiwan based company, was given immunity from prosecution because it was the first to reveal the price fixing and it alerted regulators about the cartels.
According to the EC, there were two cartels involved in price fixing, one concerned with computer monitors, the other with cathode-ray tubes. Toshiba, MTPD, Panasonic and Technicolor participated in the cathode-ray tubes for TVs, while the other companies subjected to the fine were part of both cartels.
The largest fine, €450 million, was imposed to Philips, but the company said it would appeal the decision. The other companies could not be reached for comment.
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