Nokia accuses technology heavyweights of LCD price fixing

by Stevie Smith - Dec 2 2009, 09:18

Consumer electronics giants Samsung, Toshiba, Hitachi, Sharp, Philips and LG find themselves in potentially deep legal hot water this week after Nokia Corp., the world’s leading mobile phone manufacturer, accused them of fixing prices in the LCD sector for a decade.

With suits filed in both the United States and the United Kingdom, Finnish heavyweight Nokia contends that the aforementioned technology specialists – along with Tatung, AU Optronics, Seiko Espson and Shungwa Picture Tubes – are part of a cartel controlling the prices associated with display screens used in mobile phones and monitors.

According to papers filed by Nokia at the U.S. District Court for Northern California, the technology cartel worked to inflate prices in the LCD marketplace between 1996 and 2006, which damaged the mobile phone maker’s business as a result.

While Nokia has not divulged the monetary amount it is seeking by way of damages, it has tasked the court with granting an injunction against the cartel and bringing the collusion to an end.

Reuters reports that spokesmen representing Samsung, LG, Seiko Epson and Sharp have all declined to comment on the accusations, while a spokeswoman for AU Optronics refused to comment because the company has not received formal notification of the suit brought against it.

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