In a significant legal development, LG Electronics has secured victory in a long-standing antitrust lawsuit against Taiwanese panel manufacturers AUO and HannStar Display. The court has issued a first-instance judgment, compelling AUO and HannStar Display to pay a combined compensation of 32.8 billion won to LG for their alleged involvement in a long-term monopoly and manipulation of LCD panel prices in the industry.
The lawsuit, which dates back to 2006, originated from a large-scale investigation conducted by the U.S. Department of Justice into Asian panel factories. The investigation focused on the belief that eight LCD panel factories in Taiwan, Japan, and South Korea collaborated to manipulate prices, violating U.S. antitrust laws. Notably, Samsung was the first to cooperate as a tainted witness, leading to plea bargains with Taiwanese factories, including LGD and Chi Mei Electronics. The fines imposed totaled nearly US$900 million, and numerous senior executives were sentenced to prison terms and fines.
In the recent judgment, AUO and HannStar Display were directed to compensate LG with a total of 32.8 billion won. Both defendants have expressed their intention to appeal the decision. AUO emphasized that this case is part of a civil lawsuit stemming from the LCD antitrust case concluded in 2006. The legal battle, initiated in 2014, has spanned almost a decade. AUO intends to carefully review the judgment’s reasons, consult with legal experts, and take appropriate actions, including the filing of an appeal.
HannStar Display also stated that the judgment will not significantly impact the company’s finances and operations. Despite the ruling, HannStar Display plans to continue its legal battle by pursuing an appeal. The case, stemming from historical antitrust investigations, serves as a reminder of the complex legal landscape surrounding price manipulation allegations in the technology industry.
