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Posted by on Dec 5, 2012 in Companies |

Fined Philips, LG and other companies for $ 1,900 million by agreeing prices

Fined Philips, LG and other companies for $ 1,900 million by agreeing prices

(Cc) Chia-Lin It

The European Commission imposed a fine of 1,470 million euros (USD $ 1,920 million), the largest in its history, to six companies including Philips, LG and Panasonic to maintain two posters for nearly a decade.

According to the commission, the companies held up six years ago to fix and divide the market for computer monitors and television cathode ray tube, technology virtually obsolete today. Between 1996 and 2006, company representatives met in Paris, Rome, Amsterdam and cities in Asia.

Most of the fine Philips took it for his role in setting prices and market structure, having to pay 313.4 million euros (USD $ 409 million). The company could face a fine more due to a joint venture that also would be involved. The CEO of the Dutch company, Frans van Houten, said they will appeal the decision, claiming it is unjustified and disproportionate punishment.

LG Electronics will pay 295.6 million euros (USD $ 385 million), followed by Panasonic that was fined 157.5 million euros (USD $ 205 million). The Japanese company also said it would appeal the decision, saying it is “wrong”.

Samsung also was fined 150.8 million euros, Toshiba for 28 million euros and Technicolor for 38.6 million euros. A joint venture between Philips and LG also was fined 391.9 million euros, and two joint ventures were also infraccionadas Panasonic.

Although the punishment finally arrived for these companies to fix prices, the downside is that consumers already suffered damage and had to pay for more expensive and monitors during the years of the settlement, and they popularized the LCD, plasma and LED.

Link: U.S. $ 1.9 billion imposes record cartel fine on Philips, five others (Reuters)

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