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Price Fixing in the LCD Business Sure Doesn’t Seem to Do Much Good!

Started by TLF · 7 months ago

There’s news today that the Department of Justice (DOJ) is imposing fines on three leading electronics manufacturers — LG Display Co. Ltd., Sharp Corp. and Chunghwa Picture Tubes Ltd. — “for their roles in conspiracies to fix prices in the sale o ... Continue reading »

6 comments

  • Adam Thierer

    7 months ago

    The more I think about it, the more asinine I find this. Here's a list of the top plasma suppliers and here's a list of the top TFT-LCD suppliers. As you will see, the big dog in this sector is Samsung, which is #1 in the LCD market and #2 in the plasma market. And yet Samsung wasn't in on the price fixing "cartel" that the DOJ just busted up.

    Hmmm... how does one create an effective price fixing cartel without the top dog from both market segments also being a part of it? I would also think that Panasonic, which #1 in plasmas, would be all too happy to see the LCD makers try to boost display prices so that they can undercut them and steal away flat-panel market share! And you may have heard of a couple of these other companies who weren't part of the "cartel" either: Sony, Hitachi, and Pioneer.

    Really, this has got to be THE worst attempt at creating a price fixing cartel that I have ever heard of.
    reply
  • Angus

    7 months ago

    did you like at the time from 2001 to 2006. or just the last couple of months? This case covers 2001 to 2006...
    reply
  • Adam Thierer

    7 months ago

    I have not looked at the prices from 2001 to 2006, and the 3 operators may indeed have succeeded, on average, in keeping prices fairly level during that period. But it certainly didn't seem to last long. My point here is not that price fixing is a great thing, or that it never works, it's that:

    (1) markets typically evolve to solve these problems because competitors don't sit still;

    (2) technological innovations route around attempts to freeze markets; and,

    (3) the remedies pursued by regulators typically take years to enforce and do very little good for consumers in the long-run.
    reply
  • toyotabedzrock

    7 months ago

    First off these three decided to cut a deal and plead guilty. I believe that there is still an ongoing investigation on other large LCD manufactures.

    Second i would point your attn to the fact that prices for smaller LCDs has not dropped much if at all for several years now, and that generally wide screen displays in those smaller sizes provide fewer actual pixels.

    Also touch screen technology still remains very expensive, and panels that use 8 bits per color have gone up in price.
    reply
  • HDTV Store

    5 months ago

    Maybe there was an attempt to hold on the prices but to apply the second highest criminal fine It's to much
    reply
  • TVS_TELEVISIONS

    4 months ago

    I have been looking for blogs related to my foray into e-commerce with lcd's as the focus for my niche. I enjoyed reading your thoughts on price fixing. Since I targeted Samsung as my first choice it is good to hear that "they weren't part of the mess" I don't know about that but I do know that other than a couple of resellers that contribute millions in sales per quarter Samsung holds people very tightly to their MAP policies especially in the online world. I will definitely bookmark this site and check back often for relevant info about my new venture.
    reply

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