Korea's antitrust regulator on Thursday fined two major electronics makers including Samsung Electronics Co. a combined 44.64 billion won ($38.5 million) for fixing prices of their major home appliance products.
Samsung Electronics and LG Electronics Inc. were fined 25.81 billion won and 18.83 billion won respectively for rigging prices of washing machines, flat panel TVs and laptop computers, according to the Fair Trade Commission (FTC).
The two tech giants were found to have held secret meetings between 2008 and 2009 through which they colluded to keep washing machine prices at their agreed-upon levels.
Similar tactics were used in manipulating prices of flat panel TVs and laptop computers, the FTC said. Through the secret meetings, the two companies were able to avoid excessive competition and raise prices.
Samsung and LG are leading players in each sector with the two holding a combined 90 percent, 99 percent and 58 percent in the washing machine, flat panel TVs and laptop computer markets in terms of their 2010 sales, according to the FTC.
"Their price rigging caused damage to many consumers by leading the prices of washing machines, flat panel TVs and laptop computers to rise more than other competing products," the FTC said in a press release.
The FTC has been intensifying its crackdown on price rigging and other anti-competitive activity that could result in price hikes on products closely related to the daily livelihoods of ordinary people.
The watchdog said that it will continue its monitoring of such price rigging activity and mete out tough punishment on those who violate the nation's fair trade law. (Yonhap)