
Seven manufacturers share $1.92 billion fine for 10 years of CRT price fixing - ukdm
http://www.geek.com/articles/chips/seven-manufacturers-share-1-92-billion-fine-for-10-years-of-crt-price-fixing-2012126/
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SoftwareMaven
I find the whistle-blowing aspect interesting (Chunghwa didn't get penalized
because they blew the whistle).

Did Chunghwa participate in the price fixing? Did they get the benefits, and
then throw their competitors under the bus? It would be an interesting way to
disadvantage your competition if so.

~~~
phogster
Prisoner's Dilemma anyone?

~~~
oconnore
The Prisoner's Dilemma is different, since (here) there is no punishment if
there is no betrayal, and betrayal is basically atomic.

~~~
flyinRyan
No, it's the same. If no one talks, nothing bad happens. If one person talks
they get to keep all the money and everyone else eats a big fine.

~~~
oconnore
Look at the matrix in [1]. The matrix here is

    
    
        +-----------+
        | A,A | C,B |
        +-----------+
        | B,C | n/a |
        +-----------+
    

With (A=B) > C

[1]
[http://en.wikipedia.org/wiki/Prisoner%27s_dilemma#Generalize...](http://en.wikipedia.org/wiki/Prisoner%27s_dilemma#Generalized_form)

------
benologist
Rewording of [http://gigaom.com/europe/samsung-lg-and-others-hit-with-
reco...](http://gigaom.com/europe/samsung-lg-and-others-hit-with-
record-1-92bn-eu-fine-over-crt-screen-cartels/) submitted by an undisclosed
geek.com employee.

------
johnnymonster
It seems as if the fines here are so minuscule to the profits that they
probably got from the price fixing. I bet they could just put that number on
the books similar to loss prevention and call it a day...

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manaskarekar
So do these price fixing fines get distributed among the consumers who paid
this price?

~~~
jlarocco
No. It's too bad the link didn't go straight to the press release, because it
answers that question and links to more information about seeking damages.

From <http://europa.eu/rapid/press-release_IP-12-1317_en.htm> :

"Any person or firm affected by anti-competitive behaviour as described in
this case may bring the matter before the courts of the Member States and seek
damages. The case law of the European Court of Justice (ECJ) and the Antitrust
Regulation (Council Regulation 1/2003) both confirm that in cases before
national courts, a Commission decision is binding proof that the behaviour
took place and was illegal. Even though the Commission has fined the companies
concerned, damages may be awarded without these being reduced on account of
the Commission fine."

In other words, people can sue for damages and use this ruling as proof. That
europa.eu pages has a little more information and some links.

~~~
easytiger
I do wonder what happens these fines.

The US govmt are pursuing lots of banks (suspiciously lots of foreign ones)
and applying massive fines with little hope of recourse or application of due
process. And It is not clear if this money goes anywhere at all.

~~~
andrewcooke
i have a game on hn, where i try to guess how many posts before someone
criticises "the government". you beat even my cynical best guess here.

~~~
thesis
Is it not a valid question considering the government is collecting a fine due
to consumers over paying?

~~~
dusing
Who else is going to do it?

~~~
jlarocco
Are you trying to say the citizens of the EU shouldn't be told how their
government is going to spend an extra $2 billion?

Because that's what he's asking about.

I agree it's an important question, but I don't know the answer.

~~~
Someone
It is not hard to Google, and the answer is not surprising.
[http://ec.europa.eu/competition/cartels/overview/faqs_en.htm...](http://ec.europa.eu/competition/cartels/overview/faqs_en.html):

 _"What happens to the proceeds from fines?

The amount of the fines is paid into the Community budget. The fines therefore
help to finance the European Union and reduce the tax burden on individuals."_

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brador
Is there any mathematical method for identifying price fixing?

Like the benford law for identifying bad accounting?

~~~
Someone
I guess you would look for correlation in price changes. Problem with that is
that external factors (oil prices, failed harvests, earthquakes in Japan) can
cause correlated price changes, too. Correlation of price changes between some
major competitors while some other players do not follow suit might be an
indicator, but those other competitors might just be in a slightly different
situation (other manufacturing method or other company structure (e.g. if one
of them owns a mine or has a long-term contract, price changes would affect
them differently))

In the end, it is really hard to detect cartels. That, I think, is the reason
the EU has the rule "the one who tells us walks free". Without it, companies
taking part in cartels would have too little to fear.

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roryokane
The original source explains why the meetings were called “green meetings” and
quotes from uncovered documents about the price-fixing:

[http://gigaom.com/europe/samsung-lg-and-others-hit-with-
reco...](http://gigaom.com/europe/samsung-lg-and-others-hit-with-
record-1-92bn-eu-fine-over-crt-screen-cartels/)

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guard-of-terra
All the management involved has already got their fat bonuses to that point.

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vertr
What items are being price fixed these days?

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qeorge
Data (wired and mobile) seems like the obvious one in the US at least.

