The $70 billion LCD manufacturing industry got a jolt when three international LCD manufacturers agreed to pay a hefty penalty of $585 million for allegedly forming a cartel, thereby raising global prices of computer monitors and notebooks, TVs, mobile phones and other electronic devices.

The fine was imposed on them by the US Justice Department for for working as a cartel from 2001 to 2006 and conspiring to fix prices of LCD display panels.

The US anti-trust regulators had conducted investigations and raids which culminated in busting an Asian group of LCD manufacturers who held a series of ''crystal meetings and traded sales information to fix prices of LCD display panels.''

In a deal arrived with the US Justice Department, South Korea-based LG's American subsidiary, LG Display America, Taiwan based company Chunghwa  and Japan's Sharp pleaded guilty and agreed to pay a fine of $585 million.

South Korea-based LG's American subsidiary, LG Display America, conspired with Taiwan-based Chunghwa and other companies and individuals in Taiwan, the US and Korea to predetermine prices for thin-film transistor (TFT) LCD panels used in computer monitors and notebooks, TVs, mobile phones, and other electronic devices which were sold globally.

Lawsuits were filed against these three companies in the US District Court in San Francisco under the federal Sherman Act. The federal act holds that businesses that conspire to set prices for its industry, rather than letting the marketplace determine the cost to consumers, violate antitrust provisions.

The Justice Department imposed a fine of $400 million on LG - the second highest criminal fine ever imposed for price-fixing, and Chunghwa $65 million - a fine, which both companies agreed to pay.

Sharp was fined $120 million on price fixing with unnamed partners who sold LCD panels to Dell for computer monitors and laptops, Motorola for panels in Razr mobile phones and Apple for panels used in iPod portable music players.

At a press conference held in Washington yesterday, Thomas Barnett, head of the Justice Department's antitrust division, said: "These price-fixing conspiracies affected millions of American consumers who use computers, cell phones and numerous other household electronics every day. These convictions and the significant fines they carry should send a clear message that the antitrust division will vigorously investigate and prosecute cartels, regardless of where they are located.''

Barnett said that as of now only these three firms have been charged, but investigation, which is continuing, could culminate in indicting more individuals from the three firms or from other firms. An individual could face a sentence of up to 10 years if convicted.

''By conspiring to drive up the price of LCD panels, consumers were forced to pay more for these products. And consumers were not the only ones affected by these conspiracies,'' deputy assistant attorney general Scott Hammond told reporters.

''Sharp understands the gravity of this situation and will strengthen and thoroughly implement measures to prevent the recurrence of this kind of problem, and will earnestly work to regain the public's confidence,'' Sharp said in a statement.

''After carefully taking into consideration the applicable laws and regulations, the facts and other factors, Sharp has decided that the best possible course of action would be to conclude the aforementioned agreement. It added.

The company plans to put this fine under extraordinary expense and take it in the fiscal quarter ending 31 December.

The company also said that its chairman along with its chief executive and few directors would return 10 to 30 per cent of their income for a period of three months citing inconvenience caused to shareholders and other individuals.