Europe imposes multimillion-dollar fines on Philips and other TV manufacturers

The European Union has fined six television manufacturers a total of 1.47 billion euros for entering into prohibited price-fixing agreements in two cartels. Philips has to pay a fine of 313 million euros and, together with LG Electronics, another 392 million euros.

In addition to Philips and LG got other electronics companies also fined: Samsung has been fined 151 million euros; LG Electronics has been sentenced to 296 million euros, Panasonic has to pay 157 million euros and the fines for Toshiba and Technicolor are 28 and 39 million euros respectively. The Taiwanese company Chunghwa was not fined because it reported the cartels as a whistleblower to the European Commission.

According to the regulator, between 1996 and 2006, the companies made prohibited price agreements within the market for cathode ray tubes, the picture tubes that formed a basic component for old CRT monitors and televisions. It is also said that mutual agreements have been made about distributing customers and limiting CRT production.

Although Philips could theoretically be fined a maximum of 2.2 billion euros, or 10 percent of the annual turnover in 2011, the fine imposed by the European Commission amounted to 313 million euros. Philips, together with LG Electronics, who jointly ran the LG Philips Displays joint venture, must also pay a fine of 392 million euros. Because Philips cooperated with the investigation into the cartel, it did receive a 30 percent discount on the final fine.

Philips calls the fine imposed by the European Commission, although it could have been higher, is ‘disproportionate and unjustified’ and says it will appeal. However, CEO Frans van Houten says that Philips “regrets being associated with this type of behaviour.”