China Fines Display Makers for Price Fixing

China's National Development and Reform Commission (NDRC) recently found six flat-panel display makers guilty of price fixing and has imposed fines totaling 353 million yuan (approximately $57 million). The companies involved in the alleged scheme that lasted from 2001 to 2006 were Samsung, LG Display (NYSE: LPL  ) , AU Optronics (NYSE: AUO  ) , Innolux, Chunghwa Picture Tubes, and HannStar Display.

The NDRC said the companies held 53 meetings where they exchanged information and negotiated prices in order to manipulate the LCD panel market. As a result, panel costs comprised roughly 80% of TV production during that time. Since then, those costs have come down and now comprise closer to 70% of TV component costs.

This comes just months after the U.S. Department of Justice fined AU Optronics $500 million for its own investigation into the price fixing conspiracy. The NDRC said its fines were lighter compared to other regulators because it based its punishment on China's "price law" instead of its "anti-monopoly law," which carries lesser penalties.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2179533, ~/Articles/ArticleHandler.aspx, 9/28/2016 8:08:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:02 PM
AUO $3.67 Down +0.00 +0.00%
AU Optronics CAPS Rating: **
LPL $13.01 Up +0.25 +1.96%
LG Display CAPS Rating: ****