EUROPEAN COMMISSION FINES PRODUCERS OF TV AND COMPUTER MONITOR TUBES € 1.47 BILLION FOR TWO DECADE-LONG CARTELS !!

Antitrust: Commission fines producers of TV and computer monitor tubes € 1.47 billion for two decade long cartels:

The European Commission has fined seven international groups of companies a total of
€ 1 470 515 000 for participating in either one or both of two distinct cartels in the sector of cathode ray tubes ("CRT"). For almost ten years, between 1996 and 2006, these companies fixed prices, shared markets, allocated customers between themselves and restricted their output. One cartel concerned colour picture tubes used for televisions and the other one colour display tubes used in computer monitors. The cartels operated worldwide. The infringements found by the Commission therefore cover the entire European Economic Area (EEA). Chunghwa, LG Electronics, Philips and Samsung SDI participated in both cartels, while Panasonic, Toshiba, MTPD (currently a Panasonic subsidiary) and Technicolor (formerly Thomson) participated only in the cartel for television tubes.  

GUESS WHAT:Chunghwa received full immunity from fines under the Commission's
2006 Leniency Notice for the two cartels, as it was the first to reveal their existence to the
Commission. Other companies received reductions of their fines for their cooperation in
the investigation under the Commission's leniency programme.

Chunghwa Picture Tubes, Ltd. (abbreviation: CPT or CPT, English abbreviation: CPT) was established on May 4, 1971 , is one of the world's most important display manufacturer. The established initial period by the the Tatung Company Rintei students served as chairman of the board is also the most important Tatung reinvestments. The company is the important manufacturers of the early research and development of video products key components CRT , early in the era of CRT monitors production for the world's top three, and therefore the Taiwan push "display Kingdom," the world stage.

Flattening demand response products, in 1997, the company is Taiwan's first lead in the introduction of large-size TFT-LCD production technology, prelude to Taiwan display into the flattened CPT for the top ten worldwide LCD display panel ( TFT-LCD ) and CRT ( CRT ) one of the factory.

 After more than the loss of at least ten years before the company is not listed; Lin Zhenyuan served as chairman of the early once a turnaround per share benefit was as high as seven yuan NT , Tatung important reinvestment profit sources. Listing for the first three generations of line production in Taiwan panel makers, due to the subsequent expansion has slowed down, unable to catch up with AU Optronics , Chi Mei Optoelectronics manufacturers; Furthermore, have to bear the loss of CRT plant depreciation; therefore, lead to long-term performance of appetite, loss again and again, the share price has long hovered in the low-grade.

However, in order to expand the layout of the companies in the Chinese mainland market, the company has been through shares Xoceco way to enter the mainland.  In addition, in September 2007, CPT, the introduction of private equity funds to improve the company's capital structure.

Decision in 2010 to 60% capital reduction to knock down the loss of nearly one billion NT dollars, avoid value per share is less than $ 5, in order to save the CPT fate into the full delivery shares. This event led to the explosive amount of 4/9 170,000 gapped lower limit. 

Commission Vice President in charge of competition policy Joaquín Almunia said: "These
cartels for cathode ray tubes are 'textbook cartels': they feature all the worst kinds of
anticompetitive behaviour that are strictly forbidden to companies doing business in
Europe. Cathode ray tubes were a very important component in the making of television and computer screens. They accounted for 50 to 70% of the price of a screen. This gives an indication of the serious harm this illegal behaviour has caused both to television and computer screen producers in the EEA, and ultimately the harm it caused to the European consumers over the years".


The two CRT cartels are among the most organised cartels that the Commission has
investigated. For almost 10 years, the cartelists carried out the most harmful anticompetitive
practices including price fixing, market sharing, customer allocation, capacity
and output coordination and exchanges of commercial sensitive information. The cartelists
also monitored the implementation, including auditing compliance with the capacity restrictions by plant visits in the case of the computer monitor tubes cartel.

Top management level meetings, dubbed "green(s) meetings" by the cartelists themselves because they were often followed by a golf game, designed the orientations for the two cartels. Preparation and implementation were carried out through lower level meetings,
often referred to as "glass meetings", on a quarterly, monthly, sometimes even weekly basis. Meetings were held in various locations in Asia (Taiwan, Korea, Japan, Malaysia, Indonesia, Thailand, Hong Kong, etc.) and Europe (Amsterdam, Budapest, Glasgow, Paris,
Rome). The cartels operated worldwide.



Multilateral meetings usually started with a review of demand, production, sales and
capacity in the main sales areas, including Europe; then prices were discussed, including
for individual customers, i.e. TV and computer manufacturers. They had therefore a direct
impact on customers in the European Economic Area (EEA), ultimately harming final
consumers. The cartelists were trying to address the decline of the CRT market in a
collusive way, to the detriment of consumers. For example, one document recording the
cartel discussions spells out clearly: "producers need to avoid price competition through
controlling their production capacity".


The investigation also revealed that the companies were well aware they were breaking the law. For instance, in a document found during the Commission's inspections, a warning goes as follows: "Everybody is requested to keep it as secret as it would be serious damage if it is open to customers or European Commission". The participants were
therefore taking precautions to avoid being in possession of anticompetitive documents. Some documents spelled out, for example: "Please dispose the following document after reading it".

Fines:

The fines were set on the basis of the Commission's 2006 Guidelines on fines (see IP/06/857 and MEMO/06/256).

In setting the level of fines, the Commission took into account the companies' sales of the products concerned in the EEA, the very serious nature of the infringement, its geographic scope, its implementation and its duration. If Chunghwa had not received full immunity, its fines would have been € 8 385 000 for the TV tubes cartel and € 8 594 000 for the computer monitor tubes cartel. Samsung SDI, Philips and Technicolor received reductions of fines ranging from 10 to 40% for their cooperation under the Commission's leniency programme. The reductions reflect the timing of their cooperation and the extent to which the evidence they provided helped the Commission to prove the respective cartels. One of the companies invoked its inability to pay the fine. The Commission assessed this claim under point 35 of the 2006 fines Guidelines and granted a reduction of the fine.

The fines imposed are as follows:

Name of undertaking	Reduction under the Leniency Notice (%)	Fine for the TV tubes cartel1 (€)	Fine for the computer monitor tubes cartel1 (€)	Total fine1 (€)
Chunghwa2	100%	0	0	0
Samsung SDI	40%	81 424 000	69 418 000	150 842 000
Philips	30%	240 171 000	73 185 000	313 356 000
LG Electronics	0%	179 061 000	116 536 000	295 597 000
Philips and LG Electronics2	30% (reduction only for Philips)	322 892 000	69 048 000	391 940 000
Technicolor	10%	38 631 000		38 631 000
Panasonic	0%	157 478 000		157 478 000
Toshiba	0%	28 048 000		28 048 000
Panasonic, Toshiba and MTPD2	0%	86 738 000		86 738 000
Panasonic and MTPD2	0%	7 885 000		7 885 000
TOTAL		1 142 328 000	328 187 000	1 470 515 000

1 Legal entities within the undertaking may be held jointly and severally liable for the whole or part of the fine imposed.

2 Jointly and severally liable for that whole fine imposed.

Background:

A Cathode Ray Tube ("CRT") is an evacuated glass envelope containing an electron gun and a fluorescent screen. Two distinct types of CRTs are relevant for the cartels sanctioned in today's decisions: (i) colour display tubes (CDT) used in computer monitors and (ii) colour picture tubes (CPT) used for colour televisions. The CRT was gradually replaced by alternative techniques such as LCD and plasma displays.

The Commission's investigation started with unannounced inspections in November 2007 (see MEMO/07/453). 

 A statement of objections was issued in November 2009 (see MEMO/09/525) on which the companies had the opportunity to comment and to be heard. A supplementary statement of objections concerning corporate liability was issued in June 2012 against two companies.

More information on this case will be available under the case number 39437 in the Commission's public case register on the competition website, once confidentiality issues have been dealt with. For more information on the Commission’s action against cartels, see its cartels website.

Action for damages:

Any person or firm affected by anti-competitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the European Court of Justice (ECJ) and the Antitrust Regulation (Council Regulation 1/2003) both confirm that in cases before national courts, a Commission decision is binding proof that the behaviour took place and was illegal. Even though the Commission has fined the companies concerned, damages may be awarded without these being reduced on account of the Commission fine.

The Commission considers that meritorious claims for damages should be aimed at compensating, in a fair way, the victims of an infringement for the harm done. More information on antitrust damages actions, including the public consultation and a citizens' summary, is available at:

http://ec.europa.eu/comm/competition/antitrust/actionsdamages/documents.html

PERFECT: NOW, DEAR EU COMMISSION, WOULD YOU LIKE TO  BE SO IDENTICALLY BEHAVIOURAL AND FINE LET'S SAY (€) 15 000 000 000  EVEN ALL THOSE LCD, TFT, FLAT DISPLAYS international groups of companies, (KOREAN AND CHINESE) FOR THE SAME IF NOT WORSE anti-competitive behaviour as described in this case ????????

JUST TO BE  AGAINST OF THE SURE UNFAIR   LOOSING PEOPLE WORKPLACES AS A CONSEQUENCE OF (KOREAN AND CHINESE) FOR THE SAME IF NOT WORSE anti-competitive behaviour as described in this case !!

FRANK SHARP.

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