General Question

shadowfelldown's avatar

What does fluther think about LCD Price Fixing?

Asked by shadowfelldown (389points) November 13th, 2008

Recently I heard about the Department of Justice fining Sharp, LG and Chunghwa $585 million dollars for conspiring to fix the prices on LCD displays.
here is the CNN report.
What do you think about this?
Was the fine enough?
Was this an isolated incident or just the tip of the iceberg?
Do you think that this finding will have a substantial effect on LCD prices for the holiday season?

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3 Answers

IchtheosaurusRex's avatar

This is nothing new. They hit Samsung with $300 Mil fine for price fixing of DRAM chips in 2005, so it is hardly an isolated incident. The iceberg you speak of is one of the major bugaboos associated with unrestrained free trade. Globalization is good only if all the players agree not to cheat, and agree to appropriate governance. China, in particular, has been reluctant to agree to either. It’s hard for the U.S. DOJ to go it alone against these foreign-based mega-corporations, and this sort of thing is not going to stop any time soon.

It’s probably too early for the effects of the ruling to trickle down to consumer prices. Don’t expect anything extra from Santa this year.

jessehattabaugh's avatar

What about projectors? I mean c’mon—LCD+lamp+fan—It can’t be that expensive!

jerv's avatar

@jessehattabaugh It’s not that expensive to produce which means that you can get one hell of a profit margin. Remember that the value of something isn’t based on what it costs to produce, but rather what people are willing to pay for it.
Of course, packaging and shipping and selling also add to the price…

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