LG Display, Sharp, and Chunghwa Picture Tubes will plead guilty and pay $585 million in fines stemming from criminal charges of a price-fixing conspiracy between the three companies.
The companies worked together to artificially inflate the prices of thin-film transistor LCDs, which are commonly found in monitors, televisions, cell phones, laptops, and many other electronics devices.
According to the U.S. government, the price-fixing took place from 2001 to 2006 with LCDs sold to Dell, Motorola Razr phones, and Apple iPod MP3 players, along with smaller, lesser known products.
LG was hit with the largest fine of $400 million, which is now the second-highest criminal fine issued by the U.S. Justice Department's Antitrust Division. Sharp must pay $120 million while Chunghwa was issued a $65 million fine. Officials did not disclose how they divided up the fines, or came up with the $585 million fine.
"These price-fixing conspiracies affected millions of American consumers who use computers, cell phones and numerous other household electronics every day," said Deputy Assistant Attorney General Scott Hammond during a media briefing. "By conspiring to drive up the price of LCD panels, consumers were forced to pay more for these products."
As part of their guilty plea in U.S. District Court in San Francisco, each company must continue to cooperate in the antitrust investigation.
European Union and Asian officials also have started investigating possible price-fixing among LCD manufacturers.
The worldwide market for LCD screens is valued at $70 billion.
The antitrust division hopes the government investigation and heavy fines will help discourage other companies from becoming involved in price-fixing conspiracies.
"Today's charges and criminal fines emphasize the commitment of the Department of Justice to crack down on international cartels," Attorney General Michael Mukasey said.
