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Friday, September 21, 2012
Taiwan FTC fines ODD Makers For Cartel

Taiwan's Fair Trade Commission (FTC) on September 20 announced it fined four optical disk drive (ODD) makers for price fixing.

According to FTC, Toshiba-Samsung Storage Technology, Hitachi-LG Data Storage, Philips & Lite-On Digital Solutions and Sony Optiarc, viloated the Taiwanese fair trade law for their concerted action in open-bid competition for ODD procurement PC vendors HP and Dell during September 2006-September 2009.

According to the FTC, the companies, before or during open-bid competition held by HP and Dell to procure ODDs, exchanged quotations and related information. They fixed the winning prices and the order of priority for suppliers in advance.

Toshiba-Samsung Storage Technology was fined with NT$25 million (US$841,411); Hitachi-LG Data Storage NT$16 million (US$533,903); Philips & Lite-On Digital Solutions, NT$8 million (US$272,526); and Sony Optiarc, NT$5 million (US$170,172).

Taiwan's FTC began investigations in November 2011, following a U.S. District Court ruling against Hitachi-LG Data Storage, which was found guilty in a similar price fixing probe related to optical disc drives. The U.S. court had fined the company with $21.1 million.

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