China fines 6 companies outside Mainland for monopoly

China's top economic planner has fined 6 companies outside the Chinese Mainland 353 million Yuan, or about 56 million US dollars, for their price monopoly on LCD panels from 2001 to 2006. The six LCD panel producers include Samsung and LG from South Korea, and Chi Mei and AU Optronics from China's Taiwan.

Lu Yanchun, deputy director of Price Monitor & Anti-monopoly Bureau, said, "We imposed the fine according to Chinese Price Law after collecting and verifying evidence. This is the first time that China has given a penalty to companies outside the Chinese Mainland."

The National Development and Reform Commission received many reports from December 2006, accusing LCD panel producers like Samsung and Chi Mei of manipulating prices. That is when the commission began investigating the case.

According to the investigation, more than 5 million panels were sold under monopolized prices and the income from this was over 33 million US dollars.

The NDRC has urged the 6 companies to refund the amount of money overpaid, confiscated about 6 million US dollars, and fined the companies more than 22 million US dollars.