Taiwan tech giant says EU price-fixing fine 'unfair'December 10th, 2010 in Technology / Business
Terry Gou, founder of Taiwan's Hon Hai Precision Industry Co., pictured in June 2010. Taiwanese IT firm Hon Hai Precision said Friday a huge fine imposed by the European Commission on its affiliate Chimei Innolux Corporation for price-fixing was "unfair" and "too high".
Taiwanese IT firm Hon Hai Precision said Friday a huge fine imposed by the European Commission on its affiliate Chimei Innolux Corporation for price-fixing was "unfair" and "too high".
Hon Hai Chairman Terry Gou also said the fine would hurt Chimei's net profit this year, after he met European Union representatives in Taipei.
He said Chimei was still considering appealing the fine.
The European Commission on Wednesday slapped fines totalling 649 million euros (860 million dollars) on five Taiwanese flat panel makers and on one South Korean firm. Chimei was hit with the largest fine -- 300 million euros.
The Commission's competition watchdog accused the firms of running a cartel between October 2001 and February 2006 that fixed prices, harming European buyers of televisions and computers equipped with liquid crystal displays.
Gou owns 2.9 percent of Chimei Innolux, while Hon Hai and its subsidiaries also have stakes in the company.
Taiwan's AU Optronics has said it will appeal against the fine in the General Court in Luxembourg but added that the fine is not expected to affect its operations.
The other Taiwanese firms have said they are considering whether to appeal and that the fines are unlikely to have any major impact on their operations.
(c) 2010 AFP
"Taiwan tech giant says EU price-fixing fine 'unfair'." December 10th, 2010. http://phys.org/news/2010-12-taiwan-tech-giant-eu-price-fixing.html