March 19, 2011
Samsung Hit With Fine For Fixed Pricing
On Friday, the U.S. Justice Department fined Korean-based Samsung SDI a total of $32 million for its involvement in an Asian price fixing ring for a key computer monitor component.
The AFP news agency reports that Samsung SDI agreed to plead guilty to one felony charge in the case, which involved a pact to cut production, fix prices and divvy up market share for color display tubes (CDTs)."Samsung SDI and co-conspirators exchanged CDT sales, production, market share and pricing information for the purpose of monitoring and enforcing adherence to their agreements," the department said in a statement.
The statement said that both parties hashed out the deals in talks in Taiwan, South Korea, Malaysia, China and other places.
Samsung was the first company fined in the sprawling conspiracy dating back from 1997 through 2006. The Justice Department said six other people have been indicted in the past two years that were involved in the case.
Wen Jun "Tony" Cheng and Cheng Yuan "CY" Lin were both executives of Taiwan's Chunghwa Picture Tubes Ltd., which was involved in a separate conspiracy to fix prices of thin film transistor-liquid crystal display.
There have been 22 executives and eight companies that have been charged in the ongoing investigation.
Some of the accused have pleaded guilty and agreed to pay fines totaling over $830 million.
Efforts made by Reuters to reach Samsung representatives for comment went unsuccessful.
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