PC Panasonic Corp.

The European Commission Thursday said it has sent formal antitrust charges to cathode ray tube manufacturers, used in televisions and computers, on suspicion that they operated a cartel.

Dutch electronics company Royal Philips Electronics NV (PHG) confirmed that it had received the commission's charges known as a statement of objections, and was preparing a response.

The commission, which declined to name the companies involved, said it had sent the charges to a "number of companies" concerning their possible involvement in "two separate cartels". One case involves namely color display tubes used in computer monitors and the other color picture tubes used in color television sets, the commission said.

The commission launched its cartel investigation into the television screen makers back in 2007, together with Asian antitrust authorities, suspicious that the manufacturers were fixing prices of the tubes.

Several offices were raided as part of the probe, to look for discriminating evidence, including those of Philips as well as Matsushita Electric Industrial Co.'s cathode-ray tube unit.

In a related investigation Hungary's competition authority GVH in May 2008 launched a cartel probe into cathode ray tube manufacturers on the European market, on suspicion of price fixing between the years 1995 and 2007.

In Hungary, companies under investigation include Samsung C&T Corp.(047050.SE), Philips, Chunghwa Pictures Tubes Ltd. (2475.TW) and Daewoo International Corp. (000830.SE)

In October Japanese antitrust regulators levied $37.4 million in fines against Panasonic Corp. of Japan, an arm of South Korea's Samsung group and LG Philips Displays Korea Co. for fixing the prices of cathode-ray tubes. According to the Japanese authorities five companies had been involved in the cartel.

The commission can fine companies up to 10% of their annual global turnover for involvement in a cartel, but in reality the fines are usually much lower than that.

The most a single company has ever had to pay in European cartel fines was EUR896 million levied from Saint Gobain in a car glass cartel.

-By Peppi Kiviniemi, Dow Jones Newswires; +3227411483; peppi.kiviniemi@dowjones.com

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