Taiwan’s Chimei Innolux Corp. was given the harshest penalty of 300 million euros (US$399 million), while AU Optronics Corp. and South Korea’s LG Display Co. Ltd. were ordered to pay 116.8 million euros and 215 million euros, respectively. Taiwan’s Chunghwa Picture Tubes Ltd. was fined 9.02 million euros and HannStar Display Corp. 8.1 million euros.
South Korea’s Samsung Electronics Co. Ltd. received full immunity for being a whistleblower in the case.
According to an EC statement, the six companies “agreed prices, including price ranges and minimum prices, exchanged information on future production planning, capacity utilization, pricing and other commercial conditions” in some 60 meetings, mainly in Taipei, between October 2001 and February 2006.
Other than the penalties, the EC also ruled that any person or company affected by these firms’ anti-competitive behavior may sue for damages in the courts of member states.
Chimei Innolux said in a statement that the ruling will not have material impact on the firm’s operations, and that it will decide whether to appeal the case after further study of the verdict. AUO also said its operations will not be affected, but that it will appeal the case in the European Union’s General Court in Luxembourg.
This blow follows a similar investigation by the U.S. government that saw Taiwan’s major panel makers settle with the U.S. Federal Court, with AUO being the only exception. Four current and former AUO executives have been ordered not to leave the U.S. as a result. At least nine states have filed suits against these firms.
Corwin Lee, a research analyst at the Taipei-based market intelligence firm Topology Technology Inc., expects the ruling to slow down local panel makers’ expansion plans.
“Taiwanese panel makers are already lagging behind their South Korean rivals. This latest development bodes ill for the local sector as it could widen the gap.” (THN)
Write to Meg Chang at meg.chang@mail.gio.gov.tw