Largest Taiwan LCD Producer, U.S. Subsidiary Indicted for Price Fixing
The Department of Justice has issued a press release announcing that AU Optronics Corporation, the largest Taiwanese thin-film transistor-liquid crystal display panels (TFT-LCD) producer and seller, its Houston-based American subsidiary, and certain executives have been indicted for participating in a LCD price-fixing conspiracy.
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(TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices.)
AU, American Subsidiary, 6 Executives Charged With LCD Price Fixingfrom 2001-2006
The indictment charges that AU Optronics Corporation participated in a conspiracy to fix the prices of TFT-LCD panels sold worldwide from Sept. 14, 2001, to Dec. 1, 2006. AU Optronics Corporation, its American subsidiary, AU Optronics Corporation America, and six AU Optronics’ executives1, each a resident of Taiwan, participated in the conspiracy at various times during the alleged conspiracy time period.
According to the one count felony charge, AU Optronics and its executives, who are current employees or members of the board of directors for the company, carried out the conspiracy by agreeing to fix prices of TFT-LCD panels during meetings and issuing price quotations in accordance with the agreements reached. As a part of the conspiracy, executives from AU Optronics and its American subsidiary also exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.
AU Faces $100 Million in Fines, Executives 10 Years Imprisonment
AU Optronics, AU Optronics Corporation America, and the six executives are charged with price fixing in violation of the Sherman Act. The maximum penalty for the conviction of a Sherman Act violation is 10 years in prison, a $1 million fine for individuals and a $100 million fine for corporations. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Fines in Ongoing Investigation Currently Total Over $860 Million
As a result of this ongoing investigation, six companies have pleaded guilty and have been sentenced to pay criminal fines totaling more than $860 million. Additionally, including this indictment, 17 executives have been charged to date in the department’s ongoing investigation.
1Hsuan Bin Chen, president; Hui Hsiung, AU Optronics’ executive vice president; Lai-Juh Chen, director of Desktop (Monitor) Display Business Group; Shiu Lung Leung, senior manager in the Desktop (Monitor) Display Business Group; Borlong Bai, senior manager of the Notebook Display Business Group and the director of the Notebook Display Business Group; and Tsannrong Lee, senior manager of IT Display, senior manager of Desktop Display, director of Desktop Display and director of Notebook Display Business Groups.
(Press release dated 06/10/10)