Cuomo accuses Samsung, Toshiba, LG of LCD price-fixing

Toshiba, Samsung, Sharp, LG and other major technology companies allegedly colluded to fix the prices of LCD screens used in televisions and computers, according to an antitrust suit filed Friday by New York Attorney General Andrew Cuomo.

The complaint alleges top-level executives at those firms attended secret meetings on a monthly or quarterly basis where they agreed upon minimum prices, price targets, increases and rates to be charged to specific computer manufacturers. The suit also accuses the companies of exchanging product information, agreeing to output levels and keeping prices artificially high by avoiding competition.

“Our investigation shows that an illegal cartel eliminated competition in the marketplace for LCD screens, made its own secret decisions to boost prices, and then took steps to make those high prices stick,” said Attorney General Cuomo. “As a result, hard-pressed New York cities, towns, schools and hospitals spent hundreds of millions of dollars on LCD screens affected by the illegal conspiracy. My office is bringing this case to get those illegal overcharges back.”

Of the firms named in the suit Hitachi, LG, Toshiba, Sharp, AU Optronics and Chi Mei did not immediately respond to a request for comment. A Samsung official said it was company policy not to comment on pending litigation. Attempts to reach CMO Japan were unsuccessful.

The lawsuit, filed in State Supreme Court in New York County, alleges the Japanese, Korean, and Taiwanese firms and their U.S. counterparts engineered a cartel that dominated the $70 billion market for liquid crystal displays from 1996 to 2006. The suit seeks restitution, damages and civil penalties from the firms for conspiring to inflate prices and overcharge public institutions purchasing televisions and computers.

The suit also claims the companies coordinated messaging to customers and manipulated media reports to make it appear as if the agreed upon price hikes were due to supply and demand.

The case is being handled by assistant attorneys General John Ioannou and Geralyn J. Trujillo and Acting Chief of the Antitrust Bureau Richard L. Schwartz, under the supervision of Deputy Attorney General for Economic Justice Michael Berlin and Executive Deputy Attorney General for Economic Justice Maria Vullo.