Sat, Dec 11, 2010 - Page 12 News List

Hon Hai, Chimei Innolux chairmen protest to EU office over ‘unfair’ fines

Staff writer, with CNA and Bloomberg

Hon Hai chief executive officer Terry Gou, left, and Chimei Innolux chairman Frank Liao are interviewed by local media yesterday on their way to the European Economic and Trade Office in Taipei.

PHOTO: LU CHUN-WEI, TAIPEI TIMES

Terry Gou (郭台銘), chairman of Hon Hai Group (鴻海集團), which owns flat-panel maker Chimei -Innolux Corp (奇美電子), protested strongly yesterday against the European Commission over huge fines slapped on the flat-panel maker for alleged price-fixing.

Chimei may post a loss this year because of the 300 million euros (US$397.76 million) in fines imposed by the European Commission, Gou said, without elaborating.

Gou and Chimei chairman Frank Liao (廖錦祥) met representatives of the European Economic and Trade Office in Taipei yesterday.

APPEAL WAITING

Chimei will wait until it receives formal notice of the fines before deciding whether to file an appeal, he said.

The head of the world’s largest contract electronics manufacturer urged the commission to explain how it came up with the amount for the fine.

‘TOO HIGH’

Gou said the 300 million euro fine was “too high” and “unfair,” while criticizing the commission for not charging Samsung Electronics Co, the world’s largest flat-panel maker, because it “blew the whistle” to the commission about the alleged price-fixing.

On Wednesday, the European Commission fined Chimei, AU Optronics Corp (友達光電), Chunghwa Picture Tubes Ltd (中華映管) and HannStar Display Corp (瀚宇彩晶), as well as LG Display Co of South Korea, a total of 649 million euros for price-fixing.

Gou said that he was not aware of any meetings between Samsung and Taiwanese flat-panel makers that resulted in the alleged price-fixing.

He suggested that Samsung, however, could have played a more significant role than the Taiwanese makers in the case.

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