DS Screen Maker Accused of Price-Fixing
Posted: Thu Dec 18, 2008 8:29 pm
DS Screen Maker Accused of Price-Fixing
By Kris Graft
The Japan Fair Trade Commission has fined electronics firm Sharp 261.07 million yen ($3 million) for suspected price-fixing of liquid crystal displays used in the Nintendo DS Lite handheld, Sharp said in a statement on Thursday.
The JFTC sent a cease-and-desist order to Sharp accusing the company of violating the country's Antimonopoly Act by colluding with Hitachi to control the price of the displays.
The JFTC's ordered surcharge relates to LCD sales occurring from October 28, 2005 to March 31, 2006 and January 1, 2007 to March 31, 2007.
The fine is due by March 19, 2009.
Sharp said in a statement that it has taken "with gravity the fact we received such orders, and will strengthen our effort of compliance with law and business ethics."
But the company contended that it "did not engage in any activities that could be categorized as a violation of Antimonopoly Act."
Sharp's statement continued, "JFTC’s conclusion leading to these orders includes some unprecedented interpretations and applications of the Antimonopoly Act, we are now considering our next steps including a hearing request."
The company added that other LCD makers are able to enter the market and compete. "Under such circumstances, Sharp and Hitachi Displays, Ltd., only two manufacturers, could not have controlled the prices."
Sharp also said that it has made "continued efforts" to reduce costs demanded by Nintendo and has negotiated prices with the game maker "in good faith."
Sharp claimed that "there is no precedent in Japan that a cartel in violation of Antimonopoly Act was found for a specific product which was sold to one private company for use of a single product model."
By Kris Graft
The Japan Fair Trade Commission has fined electronics firm Sharp 261.07 million yen ($3 million) for suspected price-fixing of liquid crystal displays used in the Nintendo DS Lite handheld, Sharp said in a statement on Thursday.
The JFTC sent a cease-and-desist order to Sharp accusing the company of violating the country's Antimonopoly Act by colluding with Hitachi to control the price of the displays.
The JFTC's ordered surcharge relates to LCD sales occurring from October 28, 2005 to March 31, 2006 and January 1, 2007 to March 31, 2007.
The fine is due by March 19, 2009.
Sharp said in a statement that it has taken "with gravity the fact we received such orders, and will strengthen our effort of compliance with law and business ethics."
But the company contended that it "did not engage in any activities that could be categorized as a violation of Antimonopoly Act."
Sharp's statement continued, "JFTC’s conclusion leading to these orders includes some unprecedented interpretations and applications of the Antimonopoly Act, we are now considering our next steps including a hearing request."
The company added that other LCD makers are able to enter the market and compete. "Under such circumstances, Sharp and Hitachi Displays, Ltd., only two manufacturers, could not have controlled the prices."
Sharp also said that it has made "continued efforts" to reduce costs demanded by Nintendo and has negotiated prices with the game maker "in good faith."
Sharp claimed that "there is no precedent in Japan that a cartel in violation of Antimonopoly Act was found for a specific product which was sold to one private company for use of a single product model."