Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Florida Attorney General Sues Hitachi over Alleged Optical Disc Drive Price Fixing, (Apr 29, 2013)
Organizations Mentioned:Dell, Inc. | Hitachi-LG Data Storage Korea, Inc. | Hitachi-LG Data Storage, Inc. | U.S. Department of Justice
The Florida Office of the Attorney General has sued an optical disc drive (ODD) manufacturer over its alleged involvement in a conspiracy to fix the prices of the drives, the Office has announced (State of Florida, Office of the Attorney General, Department of Legal Affairs v. Hitachi-LG Data Storage, Inc., April 24, 2013).
The complaint alleges that Hitachi-LG Data Storage, Inc. and its subsidiary, Hitachi-LG Data Storage Korea, Inc., participated in meetings, discussions, and communications to share competitively sensitive information—such as prices, sales, production, and bidding information—in order to rig bids for ODDs sold to Dell Inc., Hewlett-Packard Company, and Microsoft Corporation. ODDs are used to read and record data on optical disks, such as CDs and DVDs, and are commonly found in computers and video game consoles. Additionally, some ODDs are designed to be attached externally to devices, such as computers.
"Price-fixing hurts healthy business competition and costs Florida’s businesses, consumers, and governmental agencies by requiring them to pay higher prices for products," stated Florida Attorney General Pam Bondi. "My office is committed to protecting Floridians, and we will work to obtain relief for those affected by this alleged price-fixing scheme."
Hitachi-LG Data Storage, Inc. was charged with a 15-count felony charge by the U.S. Department of Justice in the federal district court in San Francisco in September 2011. Hitachi-LG Data Storage, Inc. subsequently paid a $21.1 million criminal fine and pled guilty to bid-rigging and price-fixing of ODDs.
In its complaint, the Attorney General's Office seeks equitable relief, damages, and civil penalties for Florida consumers, businesses, and governmental entities.
The case is No. CV 13 1877.
Attorneys: Lizabeth A. Brady for the Office of the Attorney General, State of Florida.
Companies: Hitachi-LG Data Storage, Inc.; Hitachi-LG Data Storage Korea, Inc.
News: Antitrust