LCD Price Fixing Admission Leads to Nokia Lawsuit

LCD Price Fixing Admission Leads to Nokia Lawsuit

On the heels of a Department of Justice investigation into LCD manufacturers comes a lawsuit that will hurt them even further. Nokia has launched a case aimed at making the LCD manufacturers pay after they admitted to price fixing efforts.

Nokia has alleged federal violations as well as antitrust violations and is looking at trebled damages for the federal violations. The case seems to carry a lot weight as the LCD manufacturers have been documented to having agreed on production allocations and market shares between each other at regular meetings over the past decade. The companies involved are not small fry either, the big boys of production like Samsung, Hitachi, Epson, LG, Sharp and Toshiba are names implicated by the DOJ investigation.

Nokia is undoubtedly looking to gain some financial buffering from this payout when it happens, as it most undoubtedly will, to prop up their tottering bottom lines. But who can really blame them? The inflated prices pushed on Nokia by the manufacturers would have hurt them anyway during the decade long period and this is merely payback. The problem for the LCD manufacturers is that they have already admitted to their guilt and this has the effect of dropping a pint of blood in shark infested waters. Nokia is actually the second company to files lawsuits (the first was AT&T), and that too in the U.S. and U.K., depending on the outcome, the other “sharks” will seek blood.

The only thing certain about the outcome of this lawsuit is that the LCD manufacturing cartel is about to take the biggest hit in their collective manufacturing history.

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