Published in News

EU fines Quanta for cartel involvement

by on26 October 2015


$7.93 million fine

The European Union has fined optical maker Quanta Storage $7.93 million for participating in a cartel of eight ODD vendors, ODMs and OEMs.

The eight ODD players involved are Philips, Hitachi-LG Data Storage, Toshiba, Samsung Storage Technology, Sony, Sony Optiarc, Lite-On Technology, Philips & Lite-On Digital Solutions and Quanta Storage.

EC's anti-trust investigation revealed that the eight companies formed a cartel during June 2004 and November 2008 to communicate with one another about their bidding strategies.

Cartel members were expected to share results of tenders, and exchange commercially sensitive information concerning open tenders organized by Dell and Hewlett-Packard to procure ODDs used in notebooks and desktops, in an attempt to avoid aggressive competition.

Philips, Lite-On Technology and Philips & Lite-On Digital Solutions were the first to reveal the existence of the cartel and as whistle-blowers have full immunity from fines according to EC's 2006 Leniency Notice.

Quanta Storage has made a statement that the result is not final and it will appeal to a court in the European Union.The news was leaked through the Taiwan Ministry of Economic Affairs. So far there has been no official response from the companies named in the leak.

Last modified on 26 October 2015
Rate this item
(1 Vote)

Read more about: