Taiwanese FPD Suppliers Face Heavy Fines

Taipei, Dec. 8, 2011 (CENS)--On top of their sluggish business, Taiwanese FPD (flat panel display) suppliers are facing an extra blow, as they are required by the U.S. and Korean authorities to pay millions or billions of NT dollars of settlement fees or fines for violation of fair trade.

Chimei-Innolux is required by the U.S. to pay US$78 million (NT$2.34 billion) of settlement fee, the highest among Taiwanese FPD firms. Chen Yien-sung, chief financial officer, noted yesterday (Dec. 7) that Chimei-Innolux has listed the cost in its financial statements for the second and third quarter, which will not become its financial burden in the future. The company is also facing a fine of US$1 million by Korean Fair Trade Commission, which is manageable for the company, according to Chen.

AU Optronics has been fined by KFTC at 28.4 billion Korean won (NT$760 million) for violation of Korea's competition law. AU, however, refused to accept the requirement of settlement fee for price monopoly by the U.S. and will appeal the case.

The U.S. Department of Justice filed a class action in 2007 against eight FPD suppliers in Taiwan, Japan, and Korea for collusion in manipulating FPD prices. They pleaded innocence to the charge but later agreed to pay a settlement fee totaling US$388 million (NT$11.64 billion). Recently, KFTC fined AU 28.4 billion won and Hann Star 871 million won (NT$23 million) for violation of the country's competition law.