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 - 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

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now

Most Popular

Microsoft Windows

Microsoft warns users not to install Windows 10's May update

28 May 2020
Server & storage

Dell EMC PowerEdge R7525 review: An EPYC core density to make Intel weep

26 May 2020
Network & Internet

Intel releases Wi-Fi and Bluetooth driver updates for Windows 10

26 May 2020