[Daily Online] LCD Manufacturers Under Investigation for Potential Price Fixing

The LCD-plasma competition just got a little more interesting.

Despite increasing revenues and topping holiday wish lists, four LCD manufacturers are currently being investigated for potential "anticompetitive behavior" – a.k.a. price fixing -- by U.S., Japanese and European Union officials, according to PC World.

Samsung Electronics said it had been served with subpoenas by regulators in the U.S., South Korea and Japan, while Sharp and Taiwan's AU Optronics were contacted by the Japan Fair Trade Commission and the U.S. Department of Justice, they said. Taiwan's Chi Mei Optoelectronics said a subsidiary in the U.S. was also contacted by the Justice Department.

The investigation came to light on Monday when LG.Philips LCD revealed that it had been subpoenaed by regulators in the U.S., South Korea, and Japan.

The probe centers on TFT (thin-film transistor) LCDs, according to Samsung. They are used in a wide range of electronics products including flat-panel televisions, computer monitors, laptop computers, cell phones, and digital music players. The companies being investigated are among the largest manufacturers of such displays.

Just days ago, it was reported that Sony -- which dropped its plasma line in favor of LCDs -- was "not too happy" about the dramatic price drops in LCD sets.

After the investigations were announced, the markets responded, with LCD manufacturers seeing their shares drop, according to Business Week.

Shares of liquid-crystal display makers -- led by LG.Philips LCD (LPL) -- took a beating in Asia on Dec. 12 following news that antitrust regulators in South Korea, the U.S., and Japan have launched a probe into possible anticompetitive behavior in the $70 billion market.

Controlled jointly by Korea's LG Electronics and Philips (PHG) of Holland, LG.Philips is already struggling with two successive quarters of losses and its share price was hit particularly hard by the news. The company's stock price fell 4.3% to a 52-week low of 25,850 won, or $27.9, in trading in Seoul.

We've reported on the fast drop of LCDs, which was followed by a stabilization and increase in prices. It is kind of odd -- though we will have to wait and see what -- if anything -- these investigations find.