Linked by Thom Holwerda on Thu 13th Nov 2008 12:48 UTC, submitted by Moulinneuf
Prices of flat panels have been dropping quite steadily ever since they first came to market, but apparently, they could've dropped a whole lot lower if it wasn't for those pesky flat panel manufacturers. Three flat panel makers, LG Display, Sharp, and Chunghwa Picture Tubes (tubes...?) have pleaded guilty to engaging in price fixing schemes to the US Department of Justice, and agreed to a shared USD 585 million fine.
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Member since:2005-07-06
Member since:2006-08-09
globalization only "works" if the world becomes like usa...
The important question if anybody says "it works" is always "to whom"?
I.e., cui bono?
anything else is to unfriendly to the US economy, and their big corps...
It's the FIRE sector that rules the world, and we have to become aware of it and destroy that rule.
Member since:2005-07-24
Fines don't help.
Multi-billion dollar fines would. The problem is humans, and the justice system, which is made up of humans, do not deal with scale well. By the time the fines get into the hundreds of millions of dollars people are thinking "Holy crap! That's a huge amount of money!", when in fact the corporate petty cash accounts' expenditures for the year for the companies being fined might exceed that sum.
Price fixing is *far* more serious than a traffic ticket. And yet these companies get fined, relatively speaking, amounts which compare to their yearly revenues similarly to the how a traffic ticket would compare to yours or my yearly income, leaving plenty of disposable income for buying that radar detector we've been meaning to get anyway.
Member since:2006-08-09
"Fines don't help.
Multi-billion dollar fines would. The problem is humans, and the justice system, which is made up of humans, do not deal with scale well. By the time the fines get into the hundreds of millions of dollars people are thinking "Holy crap! That's a huge amount of money!", when in fact the corporate petty cash accounts' expenditures for the year for the companies being fined might exceed that sum. "
Capitalist states will never allow those type of fines to become a real threat to a multinational corporation anyway. On the other hand, the US wouldn't really have to care much about Asian firms.. but given the fact that Asia is already quite upset about what the US financial system has done to them (I'm referring to the credit meltdown), I think there's a line the US should not cross here. ;-)
Price fixing is *far* more serious than a traffic ticket. And yet these companies get fined, relatively speaking, amounts which compare to their yearly revenues similarly to the how a traffic ticket would compare to yours or my yearly income, leaving plenty of disposable income for buying that radar detector we've been meaning to get anyway.
There's more to this. The dollar has declined steadily over the past few years, and that hurts Asian corporations who see their revenues decline. Then again, they're not prepared, or too much cowards, to just leave the US market altogether. The irony here is that keeping the revenues on a certain level by illegal price fixing might give US consumers (corporate or the shopping crowd) more of a break than when some of them would have decided to stop exporting to the US for the few crumbs it makes them, driving up the price in the US in the process.
The US market will slowly but steadily disappear for those firms anyway, the American consumer market is not going to be able to afford high-tech imports after the fall of the dollar, when it eventually happens.
The future for firms like LGE is the solar panel market, which will explode. I almost fear they're toostupid to even see that.
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Member since:
2006-08-09
Quite ironic, Asian flat panel cartel gets a fina of hundreds of millions of dollars, while the domestic banking cartel gets a hundreds of billions of dollars give-away. :-)
In any case, the Asians have no idea what to do with the dollars they import for their exports anyway, so instead of buying US treasury bonds they might as well just give it straight to the DoJ in cash.
I doubt those firms with multi billion dollar revenues really care that much. Fines don't help. Banning them from the market does. But consumerism is deemed to keep the American economy from dying (albeit in a coma) so I doubt they'll ever do that.