Sharp fined in Japan over LCD sales to Nintendo

Sharp has been fined by Japan's Fair Trade Commission as part of an investigation into price fixing of LCD (liquid crystal display) modules for Nintendo's popular DS handheld gaming device.

Sharp fined in Japan over LCD sales to Nintendo

Nintendo got screwed by Sharp?

Sharp, which is one of the world's largest LCD makers, has been instructed to pay 261 million yen (US$3 million) by March 19 next year, it said in a statement. The fine is related to LCD modules supplied to Nintendo from late October 2005 to March 2006.

Additionally Sharp received a cease-and-desist notice from the Fair Trade Commission over LCD modules sold to Nintendo between January and March 2007 for the DS Lite.

Sharp denies engaging in any activities that violate the country's Antimonopoly Act.

The company said that it and Hitachi Display supply modules to Nintendo but that other display makers can compete for the same business and so price-fixing could not take place. It also said it "made continuous efforts to reduce costs and conducted price negotiations" with Nintendo to meet prices demanded by the DS maker as close as possible.

"We understand there is no precedent in Japan that a cartel in violation of Antimonopoly Act was found for a specific product which was sold to one private company for use of a single product model," it said in the statement. "Therefore, since Sharp would like to insist its companys view on this matter, we will determine next steps including whether to request a hearing."

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indysurfn

VictoryRed wrote:

I can't say that I understand why we should care about this.

because it could happen to PSP! Because the cost of the supplies (this example the LCD screen). Add up to the cost of the product. And would explain part of why the DS is not dropping in price (besides the huge demand). Also because that is less money Nintendo has for other things that you like.

htown4life

donkeykong57 wrote:

$3 million is pocket change... to me

Loan me 3 Million then big pockets

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