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Print 21 comment(s) - last by SublimeSimplic.. on Dec 11 at 7:32 AM

Sharp will pay $120 million in fines for price fixing

When the economy around the world first starting showing signs of serious trouble some firms took illicit measures to preserve their income streams. These illicit methods involved price fixing and one of the high profile cases of price fixing came from the LCD industry.

DailyTech reported in November that three of the largest LCD manufacturers in the world -- Sharp, LG, and Chunghwa Picture Tubes -- had all pled guilty to price fixing in the LCD industry. At the time, the fines levied against the three firms totaled $548 million with Sharp footing the lion's share of the fine at $400 million.

The U.S. Justice Department has announced that Sharp and LG will be sentenced in mid-December. Reuters reports that LG will be sentenced on December 15 and will pay the $400 million fine previously reported. Sharp will be sentenced on December 16 and will be fined $120 million. The exact amount of the fine levied against Sharp was unknown when DailyTech first reported fines were levied.

Sentencing for the two firms is set for the U.S. district court in San Francisco. No mention has been made on the fines that the third company embroiled in the scandal -- Chunghwa Picture Tubes -- will have to pay or when sentencing will take place. All three firms are said to be cooperating with European and Asian antitrust authorities.



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Damnit
By Gzus666 on 12/10/2008 2:20:58 PM , Rating: 4
Meanwhile, I owned an LG and currently own a Sharp LCD TV and I get jack squat for the price fixing, GO TEAM!




RE: Damnit
By mvpx02 on 12/10/2008 2:35:08 PM , Rating: 3
Exactly. If this were a class action lawsuit, the lawyers would get 90% while the consumers could each probably count on a coupon for like $5 off the purchase of a new LCD TV, but at least then we'd know where all the money went.


RE: Damnit
By Mutz1243 on 12/10/2008 8:51:02 PM , Rating: 2
Everyone got equally ripped off since the panels in pretty much every lcd tv is made by either LG or Sharp. It doesn't make a difference if the finished product was assembled by them or not.


RE: Damnit
By SublimeSimplicity on 12/11/2008 7:32:30 AM , Rating: 2
...and now that the companies all have to account for a $120M fine in their bottom line, prices of LCDs should drop like rocks. Mission accomplished.


What exactly is price fixing?
By Blood1 on 12/10/2008 3:12:37 PM , Rating: 2
What exactly is price fixing and how does it hurt the consumer when the consumer see's 2 tv's one cheaper but with same specs go with cheaper. They are just hurting them selves right?




RE: What exactly is price fixing?
By Shodan on 12/10/2008 3:25:36 PM , Rating: 3
Grab'd this definition off google (http://www.lawyershop.com/practice-areas/criminal-... )

Price Fixing – When companies conspire to set prices and thus control or interfere with free market competition, they have violated antitrust laws. Price fixing is considered a criminal offense.


RE: What exactly is price fixing?
By quiksilvr on 12/10/2008 3:55:31 PM , Rating: 2
I knew something's been going on for years. Ain't no way that after 3-4 years a 32" LCD TV is on average $500 consistently.


RE: What exactly is price fixing?
By Targon on 12/11/2008 7:29:27 AM , Rating: 2
The quality of the products have improved in that time though, and this is a key issue that many people forget. Size isn't the key to why a price may remain the same over time. Cost of manufacture, improved resolution, better refresh rates, and even faster processing will normally raise the price a bit, even as the other components may drive the price down.

No one should really accept a 720p panel when 1080p is what you want/need for native resolutions for Blu-Ray in my opinion. Yes, it would be cheaper, but at the same time, you will want to replace it much sooner. 720p may be better than SD for watching TV, but it won't be as good as the 1080i that most systems provide, and if you are going to 1080i, why not spend a little more for 1080p?


RE: What exactly is price fixing?
By Ordr on 12/10/08, Rating: -1
RE: What exactly is price fixing?
By tastyratz on 12/10/2008 3:37:28 PM , Rating: 2
well lets say that tv is 800, and the other tv is 900. You will happily buy the tv for 800 thinking your getting a deal but your not. The price fixing might be where for example the manufacturers decided to all agree to sell their panels to tv makers for $400 extra, raising tv costs by 400. No reason but to corner the market and inflate prices. since together they are where everyone seems to get their panels its essentially a monopoly. Instead of competition driving price down they artificially raise the average pricing.


Lower Prices?
By King of Heroes on 12/10/2008 2:21:28 PM , Rating: 2
Now that the fixing has been exposed, could this possibly result in lower prices for non-TN panel types? I know LG is the sole manufacturer for *IPS panel technology, and since they seem to be ringleader for this, could we see a lowering of IPS monitor prices to actual competitive levels?




RE: Lower Prices?
By fleshconsumed on 12/10/2008 3:28:30 PM , Rating: 2
Would be nice. It's difficult to justify paying 2x premium for non-TN panel.


RE: Lower Prices?
By n00bxqb on 12/11/2008 2:35:03 AM , Rating: 2
LG isn't the sole manufacturer of IPS panels. Most popular by a long shot, but not the lone wolf by any means. Hitachi, NEC, and Mitsubishi all make IPS-based panels as well.


RE: Lower Prices?
By daar on 12/11/2008 3:14:34 AM , Rating: 2
Perhaps sole manufacturer of high end IPS displays then. Even NEC uses LG panels for their UXi professional graphics display line.


Error in article
By Trikat on 12/10/2008 3:34:14 PM , Rating: 2
"At the time, the fines levied against the three firms totaled $548 million with Sharp footing the lion's share of the fine at $400 million."

I believe that should be LG instead of Sharp.




RE: Error in article
By Klober on 12/10/2008 4:00:48 PM , Rating: 2
Just as true as the first time I posted it, but I'll post again since some people only pay attention to replies to their own posts:
quote:
Reading comprehension FTW.
quote:
DailyTech reported in November that three of the largest LCD manufacturers in the world -- Sharp, LG, and Chunghwa Picture Tubes -- had all pled guilty to price fixing in the LCD industry. At the time, the fines levied against the three firms totaled $548 million with Sharp footing the lion's share of the fine at $400 million.

The U.S. Justice Department has announced that Sharp and LG will be sentenced in mid-December. Reuters reports that LG will be sentenced on December 15 and will pay the $400 million fine previously reported. Sharp will be sentenced on December 16 and will be fined $120 million. The exact amount of the fine levied against Sharp was unknown when DailyTech first reported fines were levied.
Note that the first quoted paragraph is talking about the article posted by DailyTech in November. The second quoted paragraph is stating the information that the Justice Department just released. The final bolded area describes the reason for the discrepancy.


RE: Error in article
By toyotabedzrock on 12/11/2008 2:35:57 AM , Rating: 3
The November article states that LG was paying $400 Million.


Clear this up
By BruceLeet on 12/10/2008 3:36:48 PM , Rating: 2
I am confused.

quote:
Sharp will pay $120 million in fines for price fixing


..

quote:
..with Sharp footing the lion's share of the fine at $400 million.


..

quote:
Reuters reports that LG will be sentenced on December 15 and will pay the $400 million fine previously reported. Sharp will be sentenced on December 16 and will be fined $120 million.


All I want to know is which company is paying most to these 'antitrust authorities'




RE: Clear this up
By reredrum on 12/10/2008 3:38:58 PM , Rating: 2
i noticed that too. it's probably sharp since they probably sell more lcd's than lg, but i don't really know for sure...


RE: Clear this up
By Klober on 12/10/2008 3:59:04 PM , Rating: 2
Reading comprehension FTW.
quote:
DailyTech reported in November that three of the largest LCD manufacturers in the world -- Sharp, LG, and Chunghwa Picture Tubes -- had all pled guilty to price fixing in the LCD industry. At the time, the fines levied against the three firms totaled $548 million with Sharp footing the lion's share of the fine at $400 million.

The U.S. Justice Department has announced that Sharp and LG will be sentenced in mid-December. Reuters reports that LG will be sentenced on December 15 and will pay the $400 million fine previously reported. Sharp will be sentenced on December 16 and will be fined $120 million. The exact amount of the fine levied against Sharp was unknown when DailyTech first reported fines were levied.
Note that the first quoted paragraph is talking about the article posted by DailyTech in November. The second quoted paragraph is stating the information that the Justice Department just released. The final bolded area describes the reason for the discrepancy.


Uhm
By Murloc on 12/10/08, Rating: 0
"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs

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