ACCC silent as Europe stalks LCD cartel

James Riley
Wednesday, 15 July 2009 12:18

IT Policy - Regulation

European antitrust regulators have confirmed that they are investigating a possible cartel operation among LCD panel display makers, and that the cartel conduct may extend across the globe.

The competition regulator – the European Commission – has confirmed that it is cooperating with regulators in the US, Canada and Japan, and there is a suggestion the Australian regulator may also have been in contact with European counterparts.

The Australian Competition and Consumer Commission (ACCC), which routinely maintains a watching brief on offshore incidents but will not comment on active investigations, declined to make any comment regarding the EC investigation of LCD panel cartel.

It is a bad time to be in the cartel business in Australia, with changes to the law that will soon make the operation of a cartel punishable by a jail term for the first time – up to 10 years. The new criminal law comes into effect on July 24.

The product under European Commission investigation is the main component in the super-slim, flat displays used in consumer devices ranging from mobile phones to iPods to TV and computer monitors.

The EC confirmed that it had sent a Statement of Objections – a kind of official notification of investigation – to a number of companies, but declined to say which companies were being targeted.

Dutch giant Philips is the only company to so far have outed itself, denying the allegation in a second quarter profit statement issued on Monday and saying it would “vigorously oppose” the compaint.

While the fines for cartel operations can be steep for corporations at up to 10 per cent of global sales, there is no criminal law in Europe against cartel operators.

The Commission said the Statement of Obljections had been sent to the companies in May. They now have two months to set out in writing all known facts relevant to its defence against the objections. They can also ask for a hearing.