Hitachi and Sharp Under Investigation for DS Price Fixing

Facing fines of up to 10% of their sales on DS displays, Hitachi Display and Sharp are to be investigated by the Fair Trade Commission, Japan's fair trade group. According to eNews 2.0:

... the institution said on Thursday that the two electronics companies would be investigated because they were suspected of fixing prices of display panels for Nintendo's DS portable gaming devices. The Commission's investigators have already searched a few factories and offices owned by Sharp and Hitachi's display unit, Hitachi Display.

As the only two suppliers of LCD panels for Nintendo's DS and DS Lite they might be punished based on anti-monopoly laws if they have been found colluding to fix prices. In the US and elsewhere we've seen similar cases involving Visa, Mastercard and their member banks. WayTooHigh.com offers the following definition for price fixing:

Price fixing is an agreement between business competitors to sell the same product or service at the same price. In general, it is an agreement intended to ultimately push the price of a product as high as possible, leading to profits for all the sellers. Price-fixing can also involve any agreement to fix, peg, discount or stabilise prices. The principal feature is any agreement on price, whether express or implied. For the buyer, meanwhile, the practice results in a phenomenon similar to price gouging.

Sounds like they've been getting business tips from Bowser.

Hitachi Display and Sharp Investigated by Japan's Fair Trade Commission [eNews 2.0]


Comments

Be the first to comment on this story!