When a computer component industry colludes, even HP, the world's largest PC manufacturer, can become a victim. Recently, HP filed lawsuits against multiple global optical drive manufacturers including Toshiba and Samsung Electronics, accusing them of conspiring to manipulate market prices, causing economic damage to HP.
According to reports, on Thursday this week, HP submitted two lawsuits in a federal district court in Houston, USA. The defendants listed include major optical drive manufacturers Toshiba, Samsung, and LG Electronics. HP accused these companies of sharing information with each other from 2004 to 2010, conspiring to manipulate, raise, and maintain the prices of optical drives.
HP pointed out that the optical drive manufacturers named in the lawsuit controlled 90% of the global optical drive market. It is well known that optical drives are mainly used in desktops and laptops for reading data from optical discs. Additionally, the reason for filing the lawsuit in Houston is because HP's supply chain procurement headquarters is located there.
HP also noted that the defendant companies have a "record" of colluding in the tech industry. They have previously been investigated for anti-monopoly violations in tech products and have admitted to engaging in behind-the-scenes market manipulation in related products.
HP's lawsuit was made possible by the U.S. Department of Justice's anti-monopoly investigation into the global optical drive industry several years ago. Previously, Hitachi-LG Data Storage and several of its executives admitted to violating antitrust laws in the optical drive industry.
HP pointed out that in the press release where Hitachi-LG Data Storage admitted guilt, HP was explicitly listed as a victim of optical drive price manipulation, as HP is a large-scale purchaser of optical drives.
HP is seeking economic compensation equivalent to three times its losses and is asking the court to prohibit optical drive manufacturers from engaging in monopolistic practices again.
It is reported that in 2011, Hitachi-LG Data Storage pleaded guilty in the Department of Justice's antitrust lawsuit and accepted a fine of $21 million. Three executives were sentenced to serve time in the U.S. These executives participated in price manipulation activities multiple times between 2005 and 2009.