Penalties levied on LCD makers

First time fines handed down to overseas firms for price fixing

The mainland on Friday joined an international crackdown on a price fixing conspiracy involving several suppliers of LCD screens, levying penalties of 353 million yuan ($56.6 million) on Samsung, LG and four Taiwan companies.

The settlement, though less punitive in the eyes of analysts, was considered a landmark move as it was the first time the country had punished overseas firms for price fixing.

Similar investigations into price fixing between 2001 and 2006 have been carried out in the United States and the European Union.

The US Department of Justice said total fines of $1.4 billion have been imposed by courts while the EU has imposed 1.3 billion euros ($1.7 billion) in penalties.

Envoys from LG Display, Samsung Display and the Taiwan-based suppliers met every quarter in 2001-06 to set prices of screens when supply outstripped demand, pushing down market prices, according to regulators.

Nearly all the world's mobile phones and personal computers are assembled on the Chinese mainland, making it a major market for display screens and other components imported from South Korea, Taiwan and other Asian economies.

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