Wednesday, July 25, 2012

EU probing alleged cartel of 13 optical drives makers

The European Union has announced the start of thorough investigations against 13 different producers of optical disk drives (ODD), sending a “Statement of Objections” to what are considered “suspected participants in a cartel for the supply of computer CD and DVD drives” in the European Economic Area (EEA).

The companies accused of monopolistic behaviour have not been named yet, with Brussels stating that the suppliers of ODD units "may have coordinated their behaviour in bidding events organised by two major original equipment manufacturers".

According to preliminary findings, the 13 suppliers "engaged for at least five years in bid rigging, which is one of the most serious breaches of EU antitrust rules" and "affected customers that bought optical disk drives manufactured by the companies concerned".

The European Commission says that the sending a statement of objections is a formal step in starting a comprehensive investigation on the matter, a step needed to inform the parties concerned and to give them the chance to appear before the Commission to present theirarguments . If found guilty of anti-competitive behaviour, the as of yet unnamed companies could face a huge fine amounting to up to 10% of their annual worldwide turnover.

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