Largest Taiwan LCD Producer, U.S. Subsidiary Guilty of Price Fixing
The Justice Department has announced that AU Optronics Corporation, the largest Taiwanese thin-film transistor-liquid crystal display panels (TFT-LCD) producer and seller, its U.S.-based subsidiary, and certain executives have been found guilty for participating in a LCD price-fixing conspiracy. The jury found that the ill-gotten gain to the conspirators as a result of the fixed sales in the U.S. was at least $500 million. The maximum fine for the corporations is $1 billion.
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Apple, Dell, and HP Affected by Conspiracy
TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion annually. Companies directly affected by the LCD price-fixing conspiracy include some of the largest computer manufacturers in the world, including Apple, Dell, and Hewlett-Packard.
Former AU President, VP Found Guilty
Former AU Optronics Corporation president Hsuan Bin Chen and former AU Optronics Corporation executive vice president Hui Hsiung were also found guilty. The department said that both executives participated in the conspiracy from October 19, 2001 to December 1, 2006.
7 Companies Have Plead Guilty, 17 Executives Have Been Charged
In addition to AU's convictions, seven companies have pleaded guilty to date to charges arising out of the DOJ’s ongoing investigation and have been sentenced to pay criminal fines totaling more than $890 million. In addition to the individuals convicted today, 17 executives have been charged. Ten of the executives have pleaded guilty and have been sentenced to serve a combined total of 2,681 days in prison.
Prices were Fixed During Monthly Meetings, Conspiracy Lasted 5 Years Before Detected
At trial, the department said that the convicted companies and former executives fixed the prices of LCD panels sold into the U.S. The prices were fixed during monthly meetings with their competitors secretly held in hotel conference rooms, karaoke bars and tea rooms around Taiwan. The indictment alleged that the conspiracy lasted for more than five years before it was detected.
2 AU Employees Were Found Not-Guilty
The jury also found two AU Optronics Corporation employees not guilty - Lai-Juh Chen, former director of the Desktop Display Business Group, and Tsannrong Lee, former senior manager of the Notebooks Business Group. A mistrial was declared against Hsiu Lung Leung, former AU Optronics Corporation senior manager of Desktop Display Business Group.
(See ITT's Online Archives 10061149 for summary of AU and their executives' indictment charges.)