Nokia sues LCD, CRT display makers for price-fixing
02 Dec 2009
Mobile phone maker Nokia Corporation has filed suits against leading liquid crystal display (LCD) and cathode ray tubes (CRT) makers, including Philips, Toshiba, Sharp and Samsung, for alleged price-fixing.
In lawsuits filed in the United States and Britain against eight LCD makers last month, Nokia has accused them of collusion and price-fixing. Nokia has sought damages and expects to recover money it overpaid to the various companies for LCD displays for its mobile handsets.
Nokia, the world's biggest mobile phone maker, expects mobile phone prices to come down once the LCD makers bring down prices.
The Nokia suits have named major LCD makes such as Philips Electronics NV, Samsung Electronics Co, Seiko Epson Corp, Sharp Corp, Toshiba Corp, Durrant, AU Optronics Corp, Hitachi Ltd, LG Electronics Inc, or their subsidiaries.
"The investigations are into alleged cartel activities, effectively price fixing, in the supply of both CRTs (cathode ray tubes) and LCDs (liquid crystal display) - components that we have bought in significant volumes over a number of years," Nokia spokesman Mark Durrant said.
"Had we not been overcharged for them our profitability would have been higher," he added.
Durrant did not quantify the compensation it was claiming from the LCD-CRT makers, but merely said the amounts involved were "not insignificant."
"Clearly there is no doubt that these activities have been happening and Nokia has been overcharged and we are taking the appropriate, responsible steps to recover the damage that has been caused," he added.
Espo, Finland-based Nokia expects its 2010 sales by 10 per cent. Nokia's third quarter net loss was 559 million euros ($844 million). The group also cut more than 4,200 jobs, including 1,300 voluntary departures, as part of a recovery programme launched in January.
