CASE AT.39437 TV And Computer Monitor Tubes

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EUROPEAN COMMISSIONCompetition DGCASE AT.39437 – TV and computermonitor tubes(Only the English text is authentic)CARTEL PROCEDURECouncil Regulation (EC) 1/2003Article 7 Regulation (EC) 1/2003Date: 05/12/2012Please note that in its judgment of 9 September 2015 in Toshiba v Commission, T-104/13,ECLI:EU:T:2015:610, the General Court annulled this decision insofar as the Commissionhad found Toshiba liable for the CPT cartel from 16 May 2000 to 31 March 2003. In itsjudgment of 18 January 2017, the Court of Justice confirmed the judgment of the GeneralCourt (Toshiba v Commission, C-623/15 P, ECLI:EU:C:2017:21).This text is made available for information purposes only. A summary of this decision ispublished in all EU languages in the Official Journal of the European Union.Parts of this text have been edited to ensure that confidential information is not disclosed.Those parts are replaced by a non-confidential summary in square brackets or are shown as[ ].

EUROPEANCOMMISSIONBrussels, 5.12.2012C(2012) 8839 finalCOMMISSION DECISIONof 5.12.2012addressed to:- Chunghwa Picture Tubes Co., Ltd.- Chunghwa Picture Tubes (Malaysia) Sdn. Bhd.- CPTF Optronics Co., Ltd.- Samsung SDI Co., Ltd.- Samsung SDI Germany GmbH- Samsung SDI (Malaysia) Berhad- Koninklijke Philips Electronics N.V.- LG Electronics, Inc.- Technicolor S.A.- Panasonic Corporation- Toshiba Corporation- MT Picture Display Co., Ltd.relating to a proceeding under Article 101 of the Treaty on the Functioning of theEuropean Union and Article 53 of the EEA Agreement(COMP/39437 - TV and Computer Monitor Tubes)(Only the English language text is authentic)ENEN

EN1EN

TABLE OF CONTENTS1.Introduction . 72.The industry subject to the proceedings . 72.1.The product . 72.2.The market players . 82.2.1.Undertakings subject to these proceedings . 82.2.1.1. Chunghwa Picture Tubes Co., Ltd. . 82.2.1.2. Samsung SDI Co., Ltd. . 92.2.1.3. Koninklijke Philips Electronics N.V. . 102.2.1.4. LG Electronics, Inc. . 132.2.1.5. [Philips/LGE joint venture]. . 142.2.1.6. Thomson S.A./Technicolor S.A. . 162.2.1.7. Matsushita Electric Industrial Co., Ltd./Panasonic Corporation. 182.2.1.8. Toshiba Corporation. 182.2.1.9. Matsushita Toshiba Picture Display Co. Ltd./ MT Picture Display Co., Ltd . 202.2.1.10.Other suppliers of CRT . 202.3.Description of the market . 212.3.1.The supply . 212.3.2.The demand . 212.3.3.Inter-state trade. 223.Procedure. 223.1.The Commission's investigation . 224.Description on the events . 254.1.CDT cartel . 254.1.1.Basic principles . 254.1.2.Organisation . 264.2.CPT cartel. 284.2.1.Basic principles . 284.2.2.Organisation . 284.3.The chronology of cartel events and evidence relating to specific meetings . 314.3.1.Initial years of the collusion . 314.3.2.CDT cartel . 334.3.2.1. Period from 1996 to 1999 . 334.3.2.2. Period from 2000 to 2003 . 484.3.2.3. Period from 2004 to March 2006 . 60EN2EN

4.3.3.CPT cartel. 674.3.3.1. Early years – from 1997 to 1999 . 674.3.3.2. Middle period – from 2000 to 2003 . 894.3.3.3. Last phase – from 2004 to 2006 . 1274.3.4.Assessment of parties' arguments on facts . 1424.3.4.1. Product scope of the CDT and CPT cartels . 1424.3.4.2. Geographic scope of the CPT cartel. 1464.3.4.3. MTPD continuing the participation of Toshiba and Panasonic . 1664.3.4.4. Technicolor's participation in an overarching CPT cartel . 1674.3.4.5. Role of bilateral contacts in the participation of the Japanese companies in the CPTcartel and parties' arguments on corporate statements . 1704.3.4.6. Information exchange in the CPT cartel via contacts reported by Thomson . 1744.3.4.7. Meetings relating to Turkey . 1774.3.4.8. Economic arguments on geographic and product scope of the CPT cartel and on anEU anti-dumping case . 1795.Application of Article 101 of the Treaty and Article 53 of the EEA Agreement . 1835.1.The Treaty and EEA Agreement . 1835.1.1.Relationship between the Treaty and the EEA Agreement . 1835.1.2.Jurisdiction . 1845.1.2.1. Principles and application to this case . 1845.1.2.2. Assessment of parties' arguments . 1855.2.Application of the relevant competition rules . 1885.2.1.Application of Article 101(1) of the Treaty and Article 53(1) of the EEA Agreement. 1885.2.2.The nature of the infringement . 1895.2.2.1. Agreements and concerted practices . 1895.2.2.2. Single and continuous infringement. 1975.2.3.Restriction of competition . 2105.2.3.1. Restriction of competition in this case . 2105.2.3.2. Assessment of parties' arguments . 2135.2.4.Non-applicability of Article 101(3) of the Treaty and Article 53(3) of the EEAAgreement . 2155.2.5.Effect upon trade between Member States and between EEA Contracting Parties . 2155.2.5.1. Principles . 2155.2.5.2. Application to this case . 216EN6.Addressees. 2176.1.General principles . 2173EN

6.2.Application to this case . 2226.2.1.Chunghwa . 2226.2.2.Samsung . 2246.2.3.Philips. 2286.2.4.LG Electronics . 2376.2.5.[Philips/LGE joint venture] . 2416.2.5.1. The Commission's findings . 2416.2.5.2. Assessment and conclusion on Philips' and LGE's arguments . 2566.2.6.Thomson/Technicolor . 2816.2.7.Matsushita/Panasonic . 2816.2.8.Toshiba . 2826.2.9.MTPD. 2836.2.9.1. The Commission's findings . 2836.2.9.2. Assessment and conclusion on Panasonic's and Toshiba's arguments . 2876.3.Conclusion. 2987.Duration of the infringement . 3007.1.Starting and end dates . 3007.1.1.CDT cartel . 3007.1.2.CPT cartel. 3018.Remedies . 3058.1.Article 7 of Regulation (EC) No 1/2003 . 3058.2.Article 23(2) of Regulation (EC) No 1/2003 . 3058.3.Article 25 of Regulation (EC) No 1/2003 . 3068.4.Calculation of the fines . 3078.4.1.Methodology for setting the fine amount . 3078.4.2.Determination of the value of sales . 3078.4.2.1. Products concerned . 3078.4.2.2. Sales related to the infringement . 3098.4.2.3. Identifying the value of Direct EEA Sales and Direct EEA Sales ThroughTransformed Products by place of delivery . 3158.4.2.4. Relevant year . 3168.4.2.5. Calculation of the value of sales of the joint ventures . 3188.4.3.Determination of the basic amount of the fine . 3238.4.4.Gravity. 3238.4.4.1. Nature . 3238.4.4.2. Combined market share. 324EN4EN

8.4.4.3. Geographic scope . 3248.4.4.4. Implementation . 3248.4.4.5. Assessment of parties' arguments . 3248.4.4.6. Conclusion on gravity . 3268.4.5.Duration. 3268.4.6.The percentage to be applied for the additional amount . 3288.4.7.Calculation and conclusion on basic amounts . 3288.5.Adjustments to the basic amounts of the fine . 3298.5.1.Aggravating circumstances . 3298.5.2.Mitigating circumstances . 3298.5.2.1. Substantially limited role and limited participation . 3298.5.2.2. Non implementation of the cartels . 3328.5.2.3. Absence of benefits . 3338.5.2.4. Effective co-operation outside the 2006 Leniency Notice . 3338.5.2.5. Difficult economic situation . 3358.5.2.6. Investigation by national competition authorities in the EEA . 335EN8.5.3.Deterrence multiplier . 3368.5.4.Application of the 10% turnover limit . 3378.6.Application of the 2006 Leniency Notice . 3378.6.1.Chunghwa . 3388.6.2.Samsung . 3408.6.3.Panasonic/MTPD . 3438.6.4.Philips. 3478.6.5.Technicolor . 3498.6.6.Conclusion on the application of the 2006 Leniency Notice . 3528.7.Ability to pay. 3548.7.1.Introduction . 3548.7.2.[Party to the proceedings] . 3568.8.Conclusion: final amount of individual fines . 3565EN

COMMISSION DECISIONof 5.12.2012addressed to:- Chunghwa Picture Tubes Co., Ltd.- Chunghwa Picture Tubes (Malaysia) Sdn. Bhd.- CPTF Optronics Co., Ltd.- Samsung SDI Co., Ltd.- Samsung SDI Germany GmbH- Samsung SDI (Malaysia) Berhad- Koninklijke Philips Electronics N.V.- LG Electronics, Inc.- Technicolor S.A.- Panasonic Corporation- Toshiba Corporation- MT Picture Display Co., Ltd.relating to a proceeding under Article 101 of the Treaty on the Functioning of theEuropean Union and Article 53 of the EEA Agreement(COMP/39437 - TV and Computer Monitor Tubes)(Only the English language text is authentic)THE EUROPEAN COMMISSION,Having regard to the Treaty on the Functioning of the European Union,Having regard to the Agreement on the European Economic Area,Having regard to Council Regulation (EC) No 1/2003 of 16 December 2002 on theimplementation of the rules on competition laid down in Articles 81 and 82 of the Treaty1,and in particular Article 7 and Article 23(2) thereof,Having regard to the Commission decision of 23 November 2009 to initiate proceedings inthis case,Having given the undertakings concerned the opportunity to make known their views on theobjections raised by the Commission pursuant to Article 27(1) of Regulation (EC) No 1/20031ENOJ L 1, 4.1.2003, p. 1. With effect from 1 December 2009, Articles 81 and 82 of the Treaty havebecome Articles 101 and 102 respectively of the Treaty on the Functioning of the European Union ("theTreaty"). The two sets of provisions are, in substance, identical. For the purposes of this Decisionreferences to Articles 101 and 102 of the Treaty should be understood as references to Articles 81 and82, respectively, of the Treaty where appropriate. The Treaty also introduced certain changes interminology, such as the replacement of "Community" by "Union" and "common market" by "inernalmarket". The terminology of the Treaty will be used throughout this Decision.6EN

and Article 12 of Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to theconduct of proceedings by the Commission pursuant to Articles 81 and 82 of the Treaty2,After consulting the Advisory Committee on Restrictive Practices and Dominant Positions,3Having regard to the final report of the hearing officer in this case4,Whereas:1.INTRODUCTION(1)2.THE INDUSTRY SUBJECT TO THE PROCEEDINGS2.1.The product23456789ENThis Decision relates to two cartels concerning Colour Display Tubes ("CDT")and Colour Picture Tubes ("CPT") that are used for computers and TVsrespectively.(2)A Cathode Ray Tube (hereinafter "CRT") is an evacuated glass envelopecontaining an electron gun and a fluorescent screen, usually with internal orexternal means to accelerate and deflect the electrons. When electrons from theelectron gun strike the fluorescent screen, light is emitted creating an image onthe screen. The single electron beam can be processed in such a way as todisplay moving pictures in natural colours.5(3)There are two distinct types of CRTs relevant for this case: (i) Colour DisplayTubes (hereinafter "CDT") used in computer monitors and (ii) Colour PictureTubes6 (hereinafter "CPT") used for colour televisions. CPTs and CDTs cannotnormally be used interchangeably because television and monitor uses requirespecialised and different resolution. The standard computer monitor requires ahigher resolution and contains more pixels than a standard CRT-basedtelevision. Also, analogue television systems use a different scanning system.7(4)CDTs and CPTs are a single component that are combined by other firms (forexample so called integrators) with the chassis and other components necessaryto produce a monitor or a colour television.8 Around 50-70% of the costs oftelevisions and monitors are made up by the CRT.9(5)Neither CPTs nor CDTs are homogenous products. Each can be assembled indifferent ways, or include attributes, that make the product better for certainuses. Product variations include among other things flat and rounded screens.Flat screens are more desirable and demand a higher price. There are also soOJ L 123, 27.4.2004, p. 18.OJ C 303/04 and C 303/05, 19.10.2013.OJ C 303/06, 19.10.2013.[ ]In some pieces of documentary evidence also alternatively referred to as CTV.[ ][ ][ ]7EN

called glare and antiglare features10, the latter being more desirable andallowing manufacturers to charge a higher price. Finally, so called bare tubesand integrated tube components (ITC) represent another type of productvariation, where integrated tube components demand a higher price.11CRTs come in a number of different sizes, expressed in inches 12. Alternatively,the different sizes are referred to as small, medium, large and jumbo.13 CRTsare large, deep, heavy and relatively fragile.14(6)2.2.The market players2.2.1.Undertakings subject to these proceedings2.2.1.1. Chunghwa Picture Tubes Co., Ltd.101112131415161718EN(7)Chunghwa Picture Tubes Co., Ltd. (hereinafter "Chunghwa Ltd.") is the ultimateparent company of the Chunghwa Group. Its headquarters are located inTaoyuan, Taiwan. Its largest shareholders are Chunghwa Electronics InvestmentCo. [15-20%] and Tatung Company [10-15%]. The rest of the shares are in thehands of the general public. Chunghwa Group’s main activities currentlyinclude the manufacture and sale of CRTs, electron guns, deflection yokes,TFT-LCD (Thin Film Transistor-Liquid Crystal Displays) panels, colour filtersand related materials, parts and components.15(8)Chunghwa Group manufactured and sold CDTs and CPTs in the period coveredby this Decision (see Recitals (986) and (1003) concerning the period). Themanufacture and sale of CRT products was accomplished by Chunghwa directlyand by its three subsidiaries: Chunghwa Picture Tubes (Malaysia) Sdn. Bhd. inKuala Lumpur, Malaysia (hereinafter "CPTM"), CPTF Optronics Co., Limited(hereinafter "CPTF") in Fuzhou, China and Chunghwa Picture Tubes (U.K.)Co., Ltd. (hereinafter "CPT UK") in Mossend, United Kingdom. ChunghwaGroup sold CRT products to customers within the EEA.16 CPT UK has gone outof the business.17(9)CPTM is a wholly owned subsidiary of Chunghwa Ltd. Chunghwa Ltd. ownsCPTM through a wholly owned intermediary holding company, ChunghwaPicture Tubes (Bermuda) Ltd. CPTM manufactured and sold CPTs throughoutthe period covered by this Decision and CDTs until 2003.18(10)Until 2000 CPTF was 100% owned by Chunghwa Ltd. (indirectly through othersubsidiaries: Chunghwa PT (Labuan) Ltd. and Chunghwa Picture Tubes(Bermuda) Ltd.). In 2000 and 2001 Chunghwa Ltd. held [90-95%] of the CPTFFor both television and monitor applications, a reduced amount of glare is desirable, as it makes thepicture easier to see or the text and graphics easier to view. To control glare, an antiglare feature calledMPR II is used. Other tubes utilize other antiglare features. [ ][ ]CPT sizes include 14” (inches), 15”, 17”, 19”, 21”, 24”, 28”, 29”, 32” and 34”. CDTs come in sizessuch as 14”, 17”, 19”, 20” and 21”. [ ][ ][ ][ ]Chunghwa does not produce monitors or televisions. [ ][ ][ ]8EN

shares (through Chunghwa PT (Labuan) Ltd. –[10-15%] and Chunghwa PictureTubes (Bermuda) Ltd. – [80-85%] and since 2002 Chunghwa Ltd. hasowned[85-90%] of the shares in CPTF (through Chunghwa PT (Labuan) Ltd. –[10-15%] and Chunghwa Picture Tubes (Bermuda) Ltd. – [75-80%], the rest ofthe shares being owned by minority investors. CPTF manufactured and soldCPTs since 2006 and CDTs since 1998.19(11)CPT UK was a Europe-based wholly owned subsidiary of Chunghwa Ltd., locatedin Mossend, Lanarkshire, Scotland. Chunghwa Ltd. opened a plant in UK inOctober 1997 and closed it in November 2002, although sales continued intoearly 2003. CPT UK primarily manufactured and sold CPTs from 1998 until2003 and also had small quantities of CDT sales.20(12)In this Decision, and unless otherwise specified, companies of the ChunghwaGroup which participated in, or bear liability for, the cartel(s), will be referredto as "Chunghwa". The individuals representing Chunghwa in the contacts withcompetitors described in this Decision are identified in [ ].2.2.1.2. Samsung SDI Co., Ltd.19202122232425EN(13)Samsung SDI Co., Ltd (hereinafter "Samsung SDI") is the ultimate parentcompany of Samsung SDI Group and it was incorporated in 1970 initially asSamsung-NEC Co. Ltd. The company was listed on the Korea Stock Exchangein January 1979. In 1984, it was renamed Samsung Display Device Co., Ltd.,and in November 1999, the company changed its name to Samsung SDI Co.,Ltd.21 Samsung SDI's largest shareholder is Samsung Electronics Co. Ltd.(hereinafter "SEC") with 19,68% of shares, the rest of the shares beingdistributed between numerous stock exchange investors.22(14)Samsung SDI Group is a global company active in display and energy products.Samsung operates Plasma Display Panel, CRT, Mobile Display and BatteryDivisions.23 Samsung SDI Group was also selling CRTs to its largestshareholder SEC.24(15)In the period covered by this Decision Samsung SDI Group manufactured andsold CRTs in the EEA directly (CPTs and CDTs manufactured in Busan andSuwon) or via the following subsidiaries: [Samsung SDI's subsidiary] (CPTs);[Samsung SDI's subsidiary] (CPTs); Samsung SDI Germany GmbH (CPTs);Samsung SDI Hungary Ltd. (CPTs); Samsung SDI (Malaysia) Berhad. (CPTsand CDTs); Samsung SDI Mexico S.A. de C.V. (CPTs) and Samsung SDIBrasil Ltd. (CDTs).25[ ]Chunghwa Picture Tubes (Bermuda) Ltd. is [ ] owned by Chunghwa and Chunghwa PT (Labuan)Ltd. is [40-45%] owned by Chunghwa and [55-60%] owned by Chunghwa Picture Tubes (Bermuda)Ltd [ ].[ ]Samsung SDI web-site under frequently asked questions (FAQ), investor relations (IR):http://www.samsungsdi.com/f faq list.sdi?category IA&pageNo 1&post E&key title&keyword &pageNo 1#[ ][ ][ ][ ]9EN

(16)All the entities referred to in Recital (15) except for Shenzen Samsung SDI Co.,Ltd., Tianjin Samsung SDI Co., Ltd. and Samsung Samsung SDI Malaysia Sdn.,Bhd. were wholly owned by companies from Samsung SDI Group throughoutthe period covered by this Decision. Specifically, the ownership was eitherdirectly by Samsung SDI or together with or via one of its wholly owned (oralmost wholly owned) subsidiaries.26 Shenzen Samsung SDI Co., Ltd. andTianjin Samsung SDI Co., Ltd. were owned by another indirectly wholly ownedSamsung SDI subsidiary, Samsung SDI Ltd. Hong Kong and by local Chinesecompanies.27 In the years 1996 to 2006 Samsung SDI Malaysia Sdn., Bhd. wasowned by Samsung SDI, Samsung Corporation and SAPL (Samsung Asia Pte.Ltd., sales subsidiary of Samsung Electronics).28 Samsung SDI Germany GmbHstopped production in December 2005 and Samsung SDI Hungary Ltd. ceasedCRT production in November 2007.29(17)In this Decision, and unless otherwise specified, companies of the Samsung SDIGroup which participated in, or bear liability for, the cartel(s) will be referred toas "Samsung" or "SDI". The individuals representing Samsung in the contactswith competitors described in this Decision are identified in [ ].2.2.1.3. Koninklijke Philips Electronics N.V.26272829303132EN(18)Koninklijke Philips Electronics N.V.30 ("KPE N.V.") is the ultimate holdingcompany of the Philips Group. The Philips Group is active in electronicproducts in various sectors including healthcare, lighting and consumerelectronics.31 KPE N.V. employes the highest levels of management within thegroup, namely the Board of Management and the Group ManagementCommittee, including the [manager] of the Product Division Components("PDC"), which held decision/ management responsibilities in relation toCRTs.32(19)The business activities of the Philips Group were organised into several ProductDivisions until 30 June 2001. One of those Product Divisions was the PDCwhich encompassed various Philips components businesses, organised inBusiness Groups. Until 30 June 2001 the entire CRT busine

CASE AT.39437 - TV and computer monitor tubes (Only the English text is authentic) CARTEL PROCEDURE Council Regulation (EC) 1/2003 Article 7 Regulation (EC) 1/2003 Date: 05/12/2012 Please note that in its judgment of 9 September 2015 in Toshiba v Commission, T-104/13,

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