Infrastructure // PC & Servers
News
12/1/2009
08:45 AM
Connect Directly
RSS
E-Mail
50%
50%

Nokia Sues LCD Makers

Phone giant accuses screen suppliers of colluding to artificially inflate prices.

Handset manufacturer Nokia has filed a price-fixing lawsuit against several companies that manufacture the liquid crystal displays Nokia uses in its phones.

Listed in the complaint are eleven LCD manufacturers, including Toshiba, Philips, Samsung, Sharp, Shungwa Picture Tubes, and LG Display. Also named are Tatung Co., Seiko Epson Corp., Hitachi and AU Optronics.

Nokia, of Finland, filed the action in U.S. District Court for Northern California. The company also filed a similar complaint in a UK court.

Nokia alleges that collusion by manufacturers artificially inflated prices in the LCD market from 1996 to 2006. "Nokia suffered damages as a result," the company said in papers filed in the California court.

Nokia is seeking treble damages of an unspecified amount and a court injunction that would bar the manufacturers from continuing their alleged collusion.

Some of the companies named in the suit were previously found to be guilty of price fixing in an investigation by the U.S. Department of Justice. LG, Sharp, and Shungwa pled guilty and agreed to pay fines.

LCD screens are used in everything from mobile phones to netbooks, and have surpassed plasma screens as the technology of choice in the flat panel television market.

European trustbusters are also eyeing the LCD market. The EU's European Commission last week formally accused several companies of conspiring to fix the price of computer and television displays on the Continent.

Europe has been notably aggressive in policing monopolistic behavior in the tech market. EC authorities have filed complaints against Microsoft and Intel, among others, in recent years.

Nokia shares were up 2.11%, to $13.54, in pre-market trading Tuesday.

Comment  | 
Print  | 
More Insights
Server Market Splitsville
Server Market Splitsville
Just because the server market's in the doldrums doesn't mean innovation has ceased. Far from it -- server technology is enjoying the biggest renaissance since the dawn of x86 systems. But the primary driver is now service providers, not enterprises.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Must Reads Oct. 21, 2014
InformationWeek's new Must Reads is a compendium of our best recent coverage of digital strategy. Learn why you should learn to embrace DevOps, how to avoid roadblocks for digital projects, what the five steps to API management are, and more.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A roundup of the top stories and trends on InformationWeek.com
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.