After Sony, Hitachi, Toshiba come under US anti-trust probe

27 Oct 2009

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The US Department of Justice (DoJ) yesterday sent subpoenas to Japanese technology giants Hitachi and Toshiba Corporation as part of an enquiry on whether their optical disc drive operations in the US with South Korean partners amounhted to antitrust violations.

Officials at both Hitachi and Toshiba have acknowledged the investigation launched by the DoJ for their optical disk drive businesses in the US although they have not revealed the content of the subpoenas.

Last week, the DoJ had issued subpoena to Sony Corporation on its optical disk drive businesses, a component that goes into the making of consumer products like Blu-ray CD's and DVD players.

Hitachi's optical disk drive business in the US known as Hitachi-LG Data Storage Inc., is a 51 per cent joint venture with Korea's LG Electronics, Toshiba's has a 51-per cent joint venture with Korea's Samsung Electronics called Toshiba Samsung Storage Technology Corporation and Sony Optiarc America is wholly owned subsidiary of Sony Corporation.

Since the past year, the DoJ has been targeting computer component manufacturers for forming a cartel to fix prices and market shares.

Last November, 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 (See: US fines 3 LCD manufacturers $585 million for forming cartel).

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