The use of cathode ray tubes in TV and computer screens is slowly but surely becoming an outdated concept around the world, but a decision from the the European Commission (EC) has brought the technology back into the spotlight, although an organisation-record fine of €1.47b (£1.19b) to TV makers in the European market is specifically for events that occurred in the past.
The case in question that European ‘anti-trust investigators’ looked on was that of ‘widespread price-fixing’ by major technology companies selling TV sets and computer monitors between 1996-2006, with the most notable guilty parties including Philips (€313.4m), LG (€295.6m), Panasonic (€157.4m), and Samsung (€150.8m) over the offence.
Technicolor (€38.6m) and Toshiba (€28m) were also punished, while Taiwanese supply company Chunghwa Picture Tubes avoided any sentence after whistleblowing to the EC on the ‘CRT cartels’.
The trade regulators have come to the conclusion that the above-mentioned companies conspired with each other to commonly fix prices in the market for CRT-based products, along with the ‘allocation of customers between themselves’, and ensuring products had ‘restricted output’, possibly leading to customers being required to buy new and ‘better’ screens as replacements. The ‘anti-competitive’ crimes (which are strictly outlawed in Europe) are noted to have occurred in both the European Economic Area (EEA) and in markets worldwide.
Joaquin Almunia, the European Commission’s vice-president of competition policy, said of the cartels “[CRT technology was formerly] a very important component in the making of television and computer screens. They accounted for 50% to 70% of the price of a screen. This gives an indication of the serious harm this illegal behaviour has caused both to television and computer screen producers in the EEA, and ultimately the harm it caused to the European consumers over the years”.
It is claimed by the EC that companies developed a strong culture of meeting to fix prices based on demand, production, capacity, and sales, and would set prices to consumers and rival companies accordingly, with many of these decisions achieved over secretive high-profile ‘greens meetings’, followed by a game of golf, and lower-level ‘glass meetings’, for regular preparation.
The EC summarised: “The cartelists were trying to address the decline of the CRT market in a collusive way, to the detriment of consumers.”
Panasonic have been one of the first of the companies that were found guilty to publicly plead their innocence and a desire to fight the ruling, as a spokesperson said of the fine: “After fully examining the content of the European Commission’s decision, we will consider how to deal with this with an eye to filing a lawsuit with a court of the EU.”
The current decision stands at the belief that all being fined are naturally guilty, though, so while it may not have had a huge overall effect on the consumer at the time under the belief that the technology was not so sustainable, could your old CRT TV have been over-priced and/or not working on purpose?
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