European Commission Suspects 13 CD/DVD Drive Firms of Cartel

The European Commission has informed thirteen companies supplying optical disk drives in the European Economic Area of its preliminary view that they may have infringed EU antitrust rules by participating in a worldwide cartel.

Optical disk drives read or write data on CDs and DVDs.

The Commission has concerns that those suppliers may have coordinated their behaviour in bidding events organised by two major OEMs for optical disk drives used in personal computers (desktops and notebooks) and in servers. The sending of a Statement of Objections does not prejudge the final outcome of the investigation.

The Commission takes the preliminary view that the companies concerned engaged for at least five years in bid rigging, which is one of the most serious breaches of EU antitrust rules. This behaviour, if established, may have ultimately affected customers that bought optical disk drives manufactured by the companies concerned.

Procedural background
A statement of objections is a formal step in Commission investigations into suspected violations of EU rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the European Economic Area Agreement). The Commission informs the parties concerned in writing of the objections raised against them and the companies can examine the documents on the Commission’s investigation file, reply in writing and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities.

The duration of cartel investigations varies according to the complexity of the case, the number of markets and companies involved and whether they cooperate with the Commission.

If, after the parties have exercised their right of defence, the Commission concludes that there is sufficient evidence of an infringement it can issue a decision prohibiting the conduct and impose a fine of up to 10% of a company’s annual worldwide turnover. This is without prejudice to a company’s ability to receive full immunity for being the first to reveal information about a cartel or to receive a reduction in its fine for supplying evidence of significant added value according to the Commission’s Leniency Notice.

Read also:
Hitachi-LG Data Storage to Pay $21 Million Criminal Fine
In bid-rigging and price-fixing on optical drives
Hitachi-LG Data Storage Executive Pleads Guilty on Bid-Rigging Conspiracies on Optical Drives
Woo Jin Yang agrees to serve 6 months in prison.
Hitachi-LG Executives in Jail
For conspiring to fix prices of optical disk drives
Hitachi, Sony and Toshiba Under Investigation By U.S. Justice Department
Possible antitrust violations by their optical disc drive business
U.S. Department of Justice Investigation of Sony
Regarding its optical disc drive business