The European Commission has handed chip manufacturing companies a 138 million fine after finding them guilty of running a decade-long cartel on smart card chips.
The investigation found that Infineon, Philips and Samsung colluded to maintain the price of chips for smart cards. Also implicated was Renesas, a former joint venture between Hitachi and Mitsubishi, however this organisation was granted immunity from prosecution after blowing the whistle on the deal.
The European Commissioner in charge of competition policy, Joaquin Almunia, said: "In this digital era smart card chips are used by almost everybody, whether in their mobile phones, bank cards or passports.
"It is crucial that the companies producing them focus their efforts on how to outperform their competitors by innovating and providing the best products at the most attractive prices. If instead companies choose to collude, at the expense of both customers and end consumers, they should expect sanctions," he said in a statement.
According to the Commisssion, the companies involved in the cartel "colluded through a network of bilateral contacts in order to determine their respective responses to customers' requests to lower prices".
They discussed and exchanged sensitive commercial information on pricing, customers, contract negotiations, production capacity or capacity utilisation and their future market conduct.
It said collusion of the type breaches Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the Agreement on the European Economic Area (EEA), which prohibit cartels and restrictive business practices.
Samsung had managed to get a 30 per cent reduction in its fine by cooperating with the investigation. Infineon was fined 82.7 million and Philips 20.1 million.
Infineon and Philips both rejected the charges and vowed to appeal the decision.
-
Should AI PCs be part of your next hardware refresh?AI PCs are fast becoming a business staple and a surefire way to future-proof your business
-
Westcon-Comstor and Vectra AI launch brace of new channel initiativesNews Westcon-Comstor and Vectra AI have announced the launch of two new channel growth initiatives focused on the managed security service provider (MSSP) space and AWS Marketplace.
-
‘Europe could do it, but it's chosen not to do it’: Eric Schmidt thinks EU regulation will stifle AI innovation – but Britain has a huge opportunityNews Former Google CEO Eric Schmidt believes EU AI regulation is hampering innovation in the region and placing enterprises at a disadvantage.
-
The EU just shelved its AI liability directiveNews The European Commission has scrapped plans to introduce the AI Liability Directive aimed at protecting consumers from harmful AI systems.
-
A big enforcement deadline for the EU AI Act just passed – here's what you need to know
News The first set of compliance deadlines for the EU AI Act passed on the 2nd of February, and enterprises are urged to ramp up preparations for future deadlines.
-
Samsung ramps up AI capabilities with Oxford Semantic Technologies acquisitionNews Oxford Semantic Technologies' knowledge graph tech will be incorporated into Samsung products across the board
-
Samsung UK recruits its first chief customer officer in bid to boost partner engagementNews Deborah Honig will lead Samsung UK’s customer experience activity across its portfolio of business offerings in the region
-
EU agrees amendments to Cyber Solidarity Act in bid to create ‘cyber shield’ for member statesNews The EU’s Cyber Solidarity Act will provide new mechanisms for authorities to bolster union-wide security practices
-
The EU's 'long-arm' regulatory approach could create frosty US environment for European tech firmsAnalysis US tech firms are throwing their toys out of the pram over the EU’s Digital Markets Act, but will this come back to bite European companies?
-
EU AI Act risks collapse if consensus not reached, experts warn
Analysis Industry stakeholders have warned the EU AI Act could stifle innovation ahead of a crunch decision
