The European Commission is investigating whether three Asian countries are selling recordable DVDs in Europe at below cost, a practice known as dumping.
The Commission is looking at DVD-R (DVD-Recordable) imports from China, Hong Kong and Taiwan following a complaint from the Committee of CD-R Manufacturers (CECMA), which represents the makers of more than 60 percent DVDs made in the European Union, the Commission said in a statement Friday.
The volume and prices of the imported products have dragged down prices charged by European companies, the Commission said, resulting in "substantial adverse effects" on European industry.
As part of the investigation, which could take up to 15 months, the Commission is seeking information from companies that export and import the DVDs to see if products were sold for export at less than domestic prices.
The E.U. could impose temporary penalty duties which can then be fixed for up to five years if most of the E.U.'s 25 member states agree with its findings.
A spokesman for one of Asia's largest makers of CD and DVD products, Taiwan's Ritek, said his company had not been informed that it is the subject of an inquiry.
"We haven't officially been notified of an investigation, but we've already prepared just in case," said Ritek spokesman Rick Ai.
From PC World