HP awarded $439m in long-running price-fixing case

Quanta told to pay HP for optical drive price fixing

HP Inc has won damages totalling $439 million in a price-fixing case, after just one of the companies in question opted for a court trial.

Back in 2013, HP sued seven manufacturers of optical disk drives, saying they conspired to drive up prices between 2004 and 2010. Over the years, six of the accused companies have settled – NEC, Panasonic, Samsung, Sony, TEAC, and Toshiba – and the European Commission fined all seven companies for running a cartel. However, Taiwan-based Quanta Storage has continued to fight the allegations from HP in court.

Advertisement - Article continues below

In October, a Texas jury sided with HP, after seeing evidence including phone logs of a Quanta staffer repeatedly calling rival companies, and an email with the subject line "price fixing". The court ordered Quanta and its US subsidiary to pay $176 million.

Quanta Storage challenged those findings, leading a US judge to instead triple them to $528 million, though the total will be reduced by $89 million, which was previously paid by companies that settled out of court, according to a Bloomberg report.

“HP hopes this judgment sends a powerful message to suppliers all over the world that there are significant consequences when you violate US antitrust laws,” said HP's lawyer Alex B. Roberts in an email sent to Bloomberg.

Advertisement
Advertisement - Article continues below

Quanta has reportedly said it took the case to court after HP demanded a larger settlement than the six other companies, saying it may appeal the ruling. "Quanta Storage was not capable of manipulating product prices," the company said according to a report on Focus Taiwan. "HP's lawsuit has no merit at all."

The court-ordered damages payment helped send Quanta's shares down by 10% today on the Taiwanese stock exchange.

Featured Resources

Top 5 challenges of migrating applications to the cloud

Explore how VMware Cloud on AWS helps to address common cloud migration challenges

Download now

3 reasons why now is the time to rethink your network

Changing requirements call for new solutions

Download now

All-flash buyer’s guide

Tips for evaluating Solid-State Arrays

Download now

Enabling enterprise machine and deep learning with intelligent storage

The power of AI can only be realised through efficient and performant delivery of data

Download now
Advertisement

Most Popular

Visit/infrastructure/server-storage/355118/hpe-warns-of-critical-bug-that-destroys-ssds-after-40000-hours
Server & storage

HPE warns of 'critical' bug that destroys SSDs after 40,000 hours

26 Mar 2020
Visit/software/video-conferencing/355138/zoom-beaming-ios-user-data-to-facebook-for-targeted-ads
video conferencing

Zoom beams iOS user data to Facebook for targeted ads

27 Mar 2020
Visit/software/355113/companies-offering-free-software-to-fight-covid-19
Software

These are the companies offering free software during the coronavirus crisis

25 Mar 2020
Visit/mobile/mobile-phones/355088/apple-lifts-iphone-purchase-restrictions
Mobile Phones

Apple lifts iPhone purchase restrictions

23 Mar 2020