LCD-LG's Conspired Dealing

LG Display Co Ltd, Sharp Corp, and Chunghwa Picture Tubes Ltd have pleaded guilty in a price fixing conspiracy of Liquid Crystal Displays between the period from September 2001 to June 2006

ZDNET reports "The price-fixing conspiracies affected millions of American consumers who use computers, cell phones, and numerous other household electronics every day," Thomas Barnett, assistant attorney general for the Justice Department's antitrust division, said in a statement. 

Electronic majors like Apple, Dell & Motorola are the most affected companies due to this price fixing conspiracy.While Chunghwa is paying US$65 million and Sharp a fine of US$120 million,LG Display has agreed to pay a US$400 million fine, which is the second-highest antitrust fine ever imposed.

Observers say that during 2000 Korean & Taiwan companies were producing excess LCD glass which forced sellers to sell US$5-10 below the cost . So the companies agreed to a price fixing collusion which resulted in the increase of prices.

Whatever the reasons may be now LG, Sharp ,etc might lose many of its valuable customers like Apple ,Dell etc unless they do a intensive damage control.