DS price-fixing bites Sharp

Much like its US counterpart, Japan's Federal Trade Commission serves as a watchdog group for antitrust activity in the island nation. In February, the agency acted on suspicions that electronics companies Sharp and Hitachi were in cahoots to fix the price on LCD panels used in Nintendo's ultrapopular DS, which has sold nearly 25 million units in the US alone since its November 2004 launch.

The JFTC apparently hit pay dirt during its investigation of the Japanese companies. The government agency said today that it has fined Sharp ¥261 million ($2.9 million) and issued a cease-and-desist order to both Sharp and Hitachi for price-fixing of the DS's LCD screens. Sharp has been ordered to pay the fine by March 19.

"Regarding JFTC's orders, Sharp's point of view is that we did not engage in any activities that could be categorized as a violation of the Antimonopoly Act," the electronics company said in a statement. "Therefore, we are considering future responses including a hearing request."

Sharp also noted that the JFTC's conclusion "includes some unprecedented interpretations and applications of the Antimonopoly Act." Namely, the company notes that Sharp and Hitachi are but two companies in a crowded LCD-screen manufacturing market, and thus they could not have controlled the prices. The company also said that Japan's Antimonopoly Act contained no precedent in which a cartel was "found for a specific product which was sold to one private company for use of a single product model."

Nintendo had not responded to requests for comment on the matter as of press time.