China fines Samsung, LG in LCD price case

China fined South Korean and Taiwanese makers of LCD display screens $56 million on Friday for price-fixing, joining the United States and Europe in a crackdown on the industry.

Suppliers have been hit by American and European regulators with penalties totaling more than $3 billion for colluding to push up slumping prices of display screens in 2001-06. US courts have sentenced 12 executives to prison.

In China, the display-manufacturing arms of Samsung Electronics and LG Electronics, along with four Taiwanese companies, were ordered to pay 144 million yuan ($22.8 million) in penalties plus repayment to Chinese customers and other charges, according to China's planning agency, the National Development and Reform Commission.

Envoys from LG Display, Samsung Display and the Taiwanese suppliers met every quarter in 2001-06 to set prices of screens at a time when supply outstripped demand, pushing down market prices, according to Western and Chinese regulators. Samsung owns 85% of Samsung Display, the biggest display manufacturer. LG Display is a publicly traded company in which LG owns a 38% stake.

The display makers "manipulated market prices and damaged the lawful interests of other companies and consumers", said an NDRC statement.

US prosecutors say some $74 billion in global sales of display screens were affected by the conspiracy.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.