Philips and LG hit with EU price-fixing probe

 

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By Stuart Turton

Posted on 14 Jul 2009 at 08:43

Philips and LG Display have been hit with a "statement of objections" from the EU, outlining suspicions that the companies conspired to fix the prices of LCD displays.

The European Commission claims the two companies may have been part of a larger cartel, but Philips claims it will "vigorously oppose" any charges.

The investigation concerns LG Display - a joint venture of Philips and LG established in 1999 to manufacture LCD displays. Philips has since sold its share in the business.

LG Display claims it is reviewing the charge sheet, but declined to comment further.

The statement of objections is a formal step in EU antitrust investigations in which the Commission informs the parties concerned about the objections raised against them.

Sending a statement of objections does not prejudge the final outcome of the procedure, the Commission says, and the companies can reply to its objections.

Back in November LG Display pleaded guilty to LCD price-fixing in the US, along with Sharp and Chunghwa Picture Tubes. LG Display was forced to hand over $400 million in fines.

The news comes as Philips reports a 94% drop in second quarter sales from last year. The company's net profit plummeted to 45m euros during the April to June quarter.