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LG & Samsung for Manipulating and Fixing Prices of Electronics to Create Monolopy

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Two South Korean Companies have been fined a total of 44.64 billion won ($38.5 million) for fixing prices of their main home appliances. Samsung Electronics and LG Electronics were fined 25.81 billion won and 18.83 billion won respectively for fixing the prices of washing machines, flat-panel TVs and laptop computers, the Fair Trade Commission (FTC) said.

In 2008 and 2009 both these companies colluded to keep washing machine prices at agreed levels, while prices of flat-panel TVs and laptop computers were also manipulated.

“Their price-rigging caused damage to many consumers by leading the prices of washing machines, flat-panel TVs and laptop computers to rise more than other competing products,” the commission said in a statement.

LG Electronics said it discovered in 2009 that some of its employees had been involved in price-fixing discussions. It voluntarily reported the matter to the FTC, a spokeswoman said, and expects to be exempt from penalties.

“We are carrying out education on cartel prevention and are also strengthening compliance,” she said.

Samsung Electronics declined comment pending official notification of the commission’s ruling.

Source – Times Of India