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LG Electronics and Samsung SDI announced Thursday that they will appeal the European Commission’s 450 million euro (630 billion won) fine that was imposed for an alleged cartel in computer and television parts.
The two Korean firms are determined to appeal the case with the European court after thoroughly reviewing all necessary legal aspects.
The European antitrust watchdog decided Wednesday to charge LG 300 million euro (420 billion won) and Samsung 150 million euro (210 billion won), along with five other firms that are suspected of price-fixing cathode ray tubes between 1996 and 2006.
Cathode ray tubes, or CRTs, were used as the crucial components for color TV screens and computer screens, before plasma and liquid crystal display screens were introduced to the market.
LG was especially upset with the European Commission’s decision, claiming that the European regulator imposed a fine for a similar cause in 2001.
Earlier in 2001, LG had been fined by the European antitrust watchdog for price-fixing by LG Philips Displays, a cathode ray tube maker firm co-founded by LG and Philips. Since then, LG has claimed that LG Philips Displays is an independent firm with no ties to LG.
In a press release, LG said that other national authorities, including the Korean Fair Trade Commission, the U.S. Department of Justice and the Canadian Competition Bureau, have investigated the same case and concluded that LG Electronics should not be held liable for LG Philips Displays’ violation.
LG also complained that the method that the European regulators used to calculate LG’s total CRT sales was simplistic and inaccurate, resulting in an excessive penalty.
In 2007, Samsung SDI and Toshiba, too, went through investigations by the European Commission for price-fixing charges. Philips and Technicolor had been investigated by the European Commission for price-fixing in 2009 as well.
By Chung Joo-won (joowonc@heraldcorp.com)
The two Korean firms are determined to appeal the case with the European court after thoroughly reviewing all necessary legal aspects.
The European antitrust watchdog decided Wednesday to charge LG 300 million euro (420 billion won) and Samsung 150 million euro (210 billion won), along with five other firms that are suspected of price-fixing cathode ray tubes between 1996 and 2006.
Cathode ray tubes, or CRTs, were used as the crucial components for color TV screens and computer screens, before plasma and liquid crystal display screens were introduced to the market.
LG was especially upset with the European Commission’s decision, claiming that the European regulator imposed a fine for a similar cause in 2001.
Earlier in 2001, LG had been fined by the European antitrust watchdog for price-fixing by LG Philips Displays, a cathode ray tube maker firm co-founded by LG and Philips. Since then, LG has claimed that LG Philips Displays is an independent firm with no ties to LG.
In a press release, LG said that other national authorities, including the Korean Fair Trade Commission, the U.S. Department of Justice and the Canadian Competition Bureau, have investigated the same case and concluded that LG Electronics should not be held liable for LG Philips Displays’ violation.
LG also complained that the method that the European regulators used to calculate LG’s total CRT sales was simplistic and inaccurate, resulting in an excessive penalty.
In 2007, Samsung SDI and Toshiba, too, went through investigations by the European Commission for price-fixing charges. Philips and Technicolor had been investigated by the European Commission for price-fixing in 2009 as well.
By Chung Joo-won (joowonc@heraldcorp.com)
