Tech Companies Slapped with €1.5bn Fine for Conspiracy in Cathode Ray Prices
European Commission Imposes €1.47 Billion Fine on Electronics Manufacturers for Price-Fixing in CRT Market
The European Commission has levied a significant fine of €1.47 billion on a group of electronics manufacturers for their participation in a price-fixing collusion in the cathode ray tube (CRT) market. The cartels, described as 'textbook cartels' with anticompetitive behavior, aimed to pervert the CRT market, according to Joaquín Almunia, commission vice president in charge of competition policy.
The price-fixing collusion took place between 1996 and 2006, and the cartels engaged in activities such as fixing prices, sharing markets, allocating customers, and restricting output. The European Commission's investigation uncovered two supplier cartels: one focused on CRTs for monitors (including LG, Philips, and Samsung) and another focused on TVs (including Panasonic).
Siemens received the highest fine for price-fixing of cathode ray tubes, totalling €344.1 million, followed by LG Electronics with a fine of €179 million. Other manufacturers fined include Panasonic (€157.5 million), Samsung SDI (€150.8 million), Toshiba (€28 million), Technicolor (€38.6 million), and MTPD2 (€7.9 million).
The European Commission made this statement today, emphasising the illegal behavior that caused significant harm, with cathode ray tubes accounting for 50 to 70% of the price of a screen. The cartels held regular top management level meetings, known as 'green meetings', to discuss supply, demand, and pricing. After the meetings, there was a round of golf, adding a peculiar twist to the anticompetitive activities.
The cartels were described as among the most sophisticated the European Commission has investigated, with the commission stating that the activities aimed to distort the CRT market and harm consumers. The fine is a clear message that such behavior will not be tolerated.
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