China fines firms for fixing LCD prices

Samsung Electronics Co. and LG Display Co., the world’s biggest makers of flat panels, were among six companies fined by China’s government for participating in a price-fixing scheme.

AU Optronics Corp., Innolux Corp., Chunghwa Picture Tubes Ltd. and HannStar Display Corp. also were cited by the National Development and Reform Commission, which ordered the companies to pay a combined $56.7 million. LG Display will pay about $18 million, and Samsung $16.2 million.

The six companies held 53 meetings in Taiwan and South Korea between 2001 and 2006 to agree on prices for the liquid-crystal-display panels, mainly used for TVs, and shared other confidential information, the commission said in a statement. The United States and the European Union previously fined panel makers — including Samsung, LG Display and Sharp Corp. — for fixing prices through similar cartels.

“The enterprises involved in the price monopoly acts have harmed the legitimate rights and interests of the domestic color TV enterprises and consumers,” said the commission, which is China’s top economic planning agency. The companies “confessed to their crimes,” the agency said.

Samsung’s display-making unit, Samsung Display Co. of Asan, South Korea, said in a statement it stopped participating in any form of price fixing at the end of 2005, and that the company will abide by China’s fair-trade law.

LG Display, based in Seoul, said in a statement the decision covers events between 2001 and 2006, and “we do not expect this decision to impact our relationship with customers or panel sales.”

Both companies supply Apple Inc., according to data compiled by Bloomberg.