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All three companies are said to have worked together to fix prices of the thin-film transistor LCD panels which they supplied to Apple, Dell and Motorola. As a consequence, this could have artificially raised the cost of your iPod, mobile phone or notebook computer.
The Antitrust Division of the US Department of Justice, which investigated the cartel, certainly thinks so. It has levied the second largest fine ever on LG as a result, and to give a clear warning to others involved in similar dodgy dealings.
It has slapped a huge fine of USD $400 million on LG, USD $120 million on Sharp and USD $65 million on Chunghwa for conspiring to fix prices for panels sold to Apple, Dell and Motorola. Price fixing meetings were said to have taken place over a five year period between 2001 and 2006.
The Assistant Attorney General in charge of the Antitrust investigation, Thomas O Barnett, has warned that further charges could follow as yet more companies are still being investigated.
In Japan, the Fair Trade Commission is also investigating price fixing within its own borders. South Korea is doing likewise.
Already, the stock markets have reacted to the news. LG Display dropped 11 percent on the Korea Exchange while Sharp lost 8.4 percent on the Tokyo Stock Exchange. Chunghwa hit an eight year low in Taipei falling by the maximum allowed on that particular exchange, 7 percent.
What chance a refund on my iPod to account for the price-fixing element? No, didn't think so...