China hits LG and Samsung with $35m price-fixing fine

Samsung and LG are among the firms who have been slapped with a $35m fine over allegations of price-fixing in the LCD display market.

Korean news service Yonhap News Agency cited China's National Development and Reform Commission in reporting that the firms had each been hit with fines totalling up to 219 million yuan.

The penalties are said to be part of a larger investigation into price-fixing practices of LCD display hardware over a five year period. Authorities charged that between 2001 and 2006 Samsung, LG and four Taiwanese vendors conspired to artificially manipulate the market.

"From 2001 to 2006, six companies involved held a total of 53 rounds of 'Crystal Conferences,' claiming that they exchange information on the global LCD panel market," officials were quoted as saying.

The penalties are the latest in the ongoing series of cases against LCD vendors over allegations of price fixing. Government agencies around the world have taken a handful of hardware vendors to court over charges of conspiring to inflate the price of LCD hardware in order to maintain higher profits.

The fallout from the case has resulted in hundreds of millions of dollars in fines against high-profile vendors including Toshiba, Hitachi and Sharp in addition to Samsung and LG.