10 capacitor suppliers fined for price collusion by FTC

2015/12/11

A record NT$5.8 billion (US$176.6 million) fine was imposed Dec. 9 on 10 international capacitor suppliers for price collusion and joint monopolization by the ROC’s Fair Trade Commission.

Seven aluminum electrolytic capacitor firms—ELNA Co., Hong Kong Chemi-Con Ltd., Nichicon Co., Nippon Chemi-Con Corp., Rubycon Corp., Sanyo Electric Co. and Taiwan Chemi-Con Corp.,—along with three tantalum capacitor makers—Matsuo Electric Co., NEC Tokin Corp. and Vishay Polytech Co.—were found to have violated the nation’s Fair Trade Act.

FTC Vice Chairman Chiu Yung-ho said the firms were involved in exchanging sensitive information pertaining to clients, pricing, and production capacity and volume through meetings or bilateral communications starting in 2005.

“The ruling was reached following a joint investigation launched last year with the EU, Singapore and the U.S. into international cartels seeking to gain industry monopoly,” he said. “The anti-competitive behavior of the firms involved in this case has substantively affected the local capacitor market.”

Aluminum capacitors are widely used in large electronic devices, such as desktop PCs, home appliances and game consoles, while tantalum capacitors are used in smaller products such as notebook PCs and smartphones.

FTC statistics reveal that revenues by the violators aggregate NT$66 billion over 10 years. As Taiwan’s electronics manufacturing sector is heavily reliant on capacitor imports, with domestic supply accounting for 3 percent market share, pricing manipulation detrimentally impacts healthy development of the industry.

By handing out the highest fine on antitrust law violators since the commission’s establishment in 1992, FTC said it was setting an example for upholding fair business practices.

“Victims of capacitor suppliers’ pricing collusion comprise electronics manufacturers like Delta Electronics Inc., Hon Hai Precision Industry Co. and Innolux Corp., as well as global consumers who are overcharged for a wide range of electronic devices,” Chiu said.

“As Taiwan is the first to take punitive action on such a case, we believe the precedent sets an example for other countries to follow in reaching the common goal of fair trade.”

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=240029&ctNode=2194&mp=9)