Companies fined for price-fixing pay off $27 mln

The six companies fined by China for price-fixing has paid off their 27 million dollars of repayment to Chinese customers. These companies also promised better administration to keep transparent operation in the future.

The display-manufacturing arms of South Korea's Samsung and LG, along with four China's Taiwanese companies, were ordered to pay 56 million US dollars in penalties plus repayment to Chinese customers and other charges on Friday.

The display makers "manipulated market prices and damaged the lawful interests of other companies and consumers," according to the National Development and Reform Commission.

So far, 27 million dollars of repayment to Chinese customers has been paid off. They promised to pay the rest of fines as soon as possible.

Samsung Display also said it will "strengthen training" so employees do not engage in price-fixing in the future.

In a written statement, LG Display said that it "remains committed to operating with full transparency in providing the best quality products and services to its global customers."

All six companies also brought up reform measures, including extending the free warranty period of their LCD panels for TV producers on the Chinese mainland from 18 months to 36 months.

Lu Yanchun, Nat'L Dev'T & Reform Commission, said, "Extending the free warranty period could save manufacturers in the mainland nearly 400 million yuan each year on maintenance costs."

Ealier, the United States and Europe also gave similar penalties to the companies for similar deeds, which amounted to about 1 billion US dollars.

China's fines were smaller because Beijing acted under its pricing law, which bases penalties on the improper income from individual sales.