Monday, August 2, 2021

EU Imposes $1.92B Fine on CRT Makers for Price-Fixing

The European Commission has imposed fines totaling a record-setting $1.92 billion on six CRT manufacturers, including Philips Electronics, Samsung, Panasonic, and LG Electronics. The commission says the companies met over a period of ten years to set prices for their products.

Foo Yun Chee from Reuters reported, “The European Commission imposed the biggest antitrust penalty in its history on Wednesday, fining six firms including Philips, LG Electronics and Panasonic a total of 1.47 billion euros ($1.92 billion) for running two cartels for nearly a decade. The Commission said executives from the European and Asian companies met until six years ago to fix prices and divide up markets for TV and computer monitor cathode-ray tubes, technology now mostly made obsolete by flat screens. Between 1996 and 2006 they met in Paris, Rome, Amsterdam and in Asia for ‘green meetings,’ so-called because they often ended in a round of golf.”

According to the BBC, “Dutch-based Philips faces the biggest penalty of 313.4m euros, followed by LG Electronics with 295.6m. Other members of the cartels included Panasonic, Samsung, Toshiba, and Technicolor. Taiwanese firm Chunghwa Picture Tubes escaped a potential 17m-euro fine for blowing the whistle on the cartel.”

Bloomberg BusinessWeek quoted EU Competition Commissioner Joaquin Almunia, who said, “These tubes accounted for 50 to 70 percent of the price of a screen. This gives an indication of the serious harm that these cartels have caused over a decade, both to the manufacturers of TVs and computers and ultimately to final consumers who had to pay a higher price than they should have.”

And Almunia told The Wall Street Journal, “These cartels for cathode ray tubes are ‘textbook cartels’: They feature all the worst kinds of anticompetitive behavior that are strictly forbidden to companies doing business in Europe.”

Similar articles

Latest Articles

Data Belongs in the...

In 2012, IBM made an oft-quoted claim that 90 percent of the world's data has been created in the last two years. They grossly...

Google Cloud Rolling Out...

WASHINGTON, D.C. — Google Cloud is helping the government sector with zero trust. The set of services are designed to help U.S. federal, state, and...

CFOs Committing to Digital...

STAMFORD, Conn. — More CFOs are planning to increase their spending on digital than any other part of the business in 2021. Eighty-two percent of...

SAP and IBM Partnering...

WALLDORF, Germany and ARMONK, N.Y. — SAP and IBM are working together to help financial institutions accelerate cloud adoptions and “modernize operations.” SAP plans to...