US fines Hitachi-LG disk drive firm for price fixing

Sep 30, 2011
A worker adjusts a logo of Japanese electronics giant Hitachi at a trade fair in Berlin in 2007. US justice authorities hit a Japanese-Korean producer of optical disk drives with a $21.1 million fine for bid-rigging and price fixing, the Justice Department announced.

US justice authorities hit a Japanese-Korean producer of optical disk drives with a $21.1 million fine for bid-rigging and price fixing, the Justice Department announced.

Hitachi-LG , a joint venture of Hitachi Ltd. and , agreed to plead guilty in the case, which was filed Friday in the in San Francisco, the department said in a statement.

Hitachi-LG was charged with 14 counts of conspiring with other companies to rig bids and fix prices on sales of DC-ROM, DVD-ROM and other similar optical disk drives to computer makers Dell, Hewlett-Packard and Microsoft between 2004 and 2009.

"As part of the conspiracy, Hitachi-LG Data Storage and co-conspirators issued price quotations in accordance with the agreements reached and exchanged information on the sales of optical disk drives to monitor and enforce adherence to the agreed-upon prices," the Justice Department said in a statement.

The conspiracies "undermined competition and innovation in the high tech industry," acting assistant attorney general Sharis Pozen said.

Other companies involved in the price-fixing were not named.

It was the latest in a series of fines levied against foreign companies involved in price fixing in the Untied States.

On Thursday, Pozen announced a huge $200 million fine against Japanese auto parts firm Furukawa Electric on similar charges.

Three Furukawa executives were also given 6-18 month prison sentences.

Explore further: Apple edges Samsung, retakes smartphone throne: survey

add to favorites email to friend print save as pdf

Related Stories

Samsung unit fined $32 mn for price-fixing

Mar 18, 2011

A unit of Korean conglomerate Samsung was fined $32 million dollars for involvement in an Asian price fixing ring for a key computer monitor component, the US Justice Department said Friday.

Samsung fined $300M for conspiracy

Oct 14, 2005

Samsung Electronics was found guilty by the U.S. Department of Justice Thursday for conspiring to set prices on computer chips and fined $300 million.

Hitachi Files Plasma TV Patent Suit Versus LG

Apr 25, 2007

On Monday, a Hitachi subsidary filed a patent infringement suit against LG Electronics and one of its subsidiaries for the improper use of Hitachi's plasma display panel technologies.

Recommended for you

Venture capitalist testifies in Silicon Valley sex bias suit

38 minutes ago

A prominent Silicon Valley venture capitalist who helped direct early investments in Google and Amazon.com is set to take the stand Tuesday in a high-profile sex discrimination lawsuit that has sparked debate over the treatment ...

Facebook fends off telecom firms' complaints

18 hours ago

Facebook founder Mark Zuckerberg fended off complaints on Monday that the hugely popular social network was getting a free ride out of telecom operators who host its service on smartphones.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

jakack
1 / 5 (1) Sep 30, 2011
Hey whats wrong with forming a "union" to demand better pay for everyone and blocking out competition! [sarcasm]

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.