DailyTech - Toshiba, Hitachi, Sony Dragged Into Court Over Antitrust Issues

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IT Toshiba, Hitachi, Sony Dragged Into Court Over Antitrust Issues
Michael Barkoviak - October 28, 2009 7:46 AM

7 comment(s) - last by CZroe.. on Oct 29 at 3:53 AM

Toshiba and Hitachi join Sony in the DoJ's antitrust crosshairs

The U.S. Department of Justice has now called Toshiba and Hitachi to join Sony in court regarding their optical disc drive businesses. Hitachi and Toshiba officials note that they'll comply with the investigation.

"It's really hard to judge the impact of such cases, because the companies are limited in what they can disclose about the investigations," Fukoku Capital CEO Yuuki Sakurai told Bloomberg. "For now, the market is not terribly concerned as these operations are not absolutely crucial for the companies."

Sony's Optiarc America U.S. business unit will also comply during the investigation, with exact details of the case unknown. The trio of companies collectively accounts for 60% of the optical drive market, according to analyst statistics, but it may be some time before legal specifics of the case will be announced.

Toshiba's optical business is 51%-owned by Samsung, while Hitachi's optical business is 51%-owned by LG Electronics.

It's rumored the DoJ is trying to reduce price fixing and bid-rigging that reportedly takes place between the companies. It's unknown if any other manufacturers will receive subpoenas in the case, with the Justice Department declining to issue public statements regarding the case.

The DoJ has cracked down on antitrust behavior and collusion among electronic companies -- five companies involved in the LCD market were forced to pay $600 million in 2008 and 2009 regarding price-fixing and collusion.

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Once again the US wants to steal money from foreign companies

By BZDTemp on 10/28/2009 9:18:09 AM , Rating: 2

No wait - that is the EU modus operandi.

Of course this new case is justified as opposed to the EU vs. Intel and EU vs. Microsoft which is simply the EU trying to make a living of US companies. Or could it be that monopolies are really bad so they ought to be fought everywhere?

RE: Once again the US wants to steal money from foreign companies

By Pneumothorax on 10/28/2009 9:59:38 AM , Rating: 2

Also, their lack of consistency is glaring. When's the last time you've seen a Euro edition of OSX with a first startup menu of different browsers to install?

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RE: Once again the US wants to steal money from foreign companies

By BZDTemp on 10/28/2009 1:46:35 PM , Rating: 2

I guess my irony should have been spelled out in capital letters :-)

Of course OS X is not meet with similar requirements as Windows. The difference is market share and that means everything. Microsoft can use their control to pervert free competition where Apple can do nothing of the sort (except with iPods/iTunes and the EU is looking into that area).

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RE: Once again the US wants to steal money from foreign companies

By Master Kenobi

(blog) on 10/28/2009 10:12:48 AM , Rating: 5

This is price fixing, different issue.

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RE: Once again the US wants to steal money from foreign companies

By BZDTemp on 10/28/2009 2:18:45 PM , Rating: 2

Yes and no.

Here it is three companies which may have taken advantage of their combined market control. In the case of Intel and Microsoft it was one company taking advantage of it's market control.

The end result is the same for us consumers. Higher prices and lack of innovation (competition motivates innovation).

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Optical drives are almost impossibly cheap...

By CZroe on 10/29/2009 3:53:15 AM , Rating: 3

Other than BD drives which Toshiba hadn't even considered until recendly, optical drives are almost impossibly cheap. It's hard to believe that there may be much profit-motivated colluding between them all.