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Sharp Fined for DS LCD Screen Price Fixing

by Carmine Red - December 29, 2008, 3:55 pm PST
Total comments: 3 Source: PC World

Sharp denies that it violated Japan's Anti-Monopoly Act while providing screens for Nintendo's handheld.

Sharp Corp. has been fined 261 million yen (approximately US $2.9 million) by Japan's Fair Trade Commission as a result of a price-fixing investigation. The company is alleged to have colluded with fellow manufacturer Hitachi Ltd. to engage in non-competitive pricing when selling LCD screens to Nintendo. NWR initially reported on the investigation when news first broke in early 2008.

Sharp maintains their position that there was no wrongdoing and that price fixing could not have taken place because other LCD manufacturers are free to compete for Nintendo's business. In addition, Sharp claims that they have "made continuous efforts to reduce costs and conducted price negotiations" when working with Nintendo. Sharp's statement continues in claiming that "there is no precedent in Japan that a cartel in violation of Anti-Monopoly Act was found for a specific product which was sold to one private company for use of a single product model."

Sharp said that they are determining the next steps for the company to take, including whether to request a hearing on the matter.

Price-fixing refers to an arrangement between companies to offer the same product or service for the same price. Such an arrangement would typically result in a higher price than usual because the pressures of competition would be removed.


DjunknownDecember 29, 2008

A)Who gets the money?

B)Do the consumers get a piece of it?

Quote from: Djunknown

A)Who gets the money?

B)Do the consumers get a piece of it?

It's a regulatory body fining a company in its jurisdiction. It's not a lawsuit. Therefore I'm guessing that.... the government gets the money. &P

Ian SaneDecember 30, 2008

I'll just a wild guess that if Nintendo is able to get LCD screens at a lower price that they will not lower the price of the DS in any way at all.  They'll probably announce that, too. ;)

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