AT&T Suit Alleges Price Fixing In LCD Panels

AT&T (T) has sued Samsung, LG Display (LPL), AU Optronics (AUO) and other makers OF LCD panels, alleging they colluded to fix prices in the U.S., Bloomberg reports. The suit was filed in federal court in San Francisco yesterday.

The telco asserts in the complaint that defendants “formed an international cartel illegally to restrict competition” in the U.S. in the market for LCD panels.

Bloomberg notes that Hitachi - not named in the suit - in March was the fourth company to plead guilty in a global U.S. LCD panel price-fixing probe. Last November, LG Display, Chunghwa Picture Tubes and Sharp all agreed to plead guilty to price fixing, paying a combined $585 million in criminal fines. All of those companies are named in the new suit.

Why does AT&T care about LCD pricing? Because the displays are used in cell phones. The company contends handset prices are artificially inflated due to display price fixing.