We have all seen the prices of LCD HDTVs fall over the past years. However, a recent investigation into the falling prices by the antitrust division of the Justice Department has found that price-fixing was taking place by some of the major display manufacturers – Sharp, LG and Chunghwa Picture Tubes.
These companies recently pleaded guilty to the price-fixing charge and
have agreed to pay a total of $585 million dollars in criminal fines.
The Justice Department declares that prices would have fallen even
faster and more if it had not been for an international price-fixing
cartel.
LG is required to pay the most at $400 million. All the companies have
also agreed to assist in the Department's further investigation in
flat-panel prices. Investigations are under way in Europe, Japan, and
South Korea. In the United States, class-action lawsuits have already
been filed.
Analysts say that prices would be even cheaper had price-fixing not
taken place. In addition to flat-panel LCD HDTVs, other items using
LCD technology would have also fallen in price (i.e.: computers,
cellphones and other household electronics).
Greed is the way of the world, as if the $100 billion profit margin
each year in the LCD HDTV business isn't more than enough already,
companies feel they need to fix the prices.
