By Tom Fairless
BRUSSELS--European Union regulators issued fines totaling EUR138
million ($181 million) against Infineon Technologies AG, Royal
Philips NV and Samsung Group on Wednesday for fixing the price of
smart card chips.
The European Commission, the region's central antitrust
authority, said the companies had "exchanged sensitive commercial
information" on pricing, customers, contract negotiations and
production between September 2003 and September 2005. Smart card
chips are used in mobile phones, bank cards, passports and other
applications.
The fines add to more than EUR1.4 billion in penalties that EU
regulators have imposed for cartel violations in the first six
months of the year.
"In this digital era, smart card chips are used by almost
everybody," the EU's antitrust chief Joaquín Almunia said in a
statement. "If...companies choose to collude, at the expense of
both customers and end consumers, they should expect
sanctions."
Neubiberg, Germany-based Infineon, which will bear the lion's
share of the fine, or EUR82.8 million, said it would appeal the
decision.
"Infineon rejects the allegations as unfounded...[and] believes
that its procedural rights were violated by the European
Commission," the company said in a statement.
A spokesman for Philips, which was fined EUR20 million, said the
company plans to appeal the decision.
Samsung received a 30% reduction to its fine for cooperating
with the investigation and will pay EUR35 million. The company
couldn't immediately be reached for comment.
A fourth company, Renesas Technology Corp. of Japan, escaped a
fine because it revealed the existence of the cartel, the
commission said.
In June, a record EUR1.06 billion fine imposed by EU regulators
against U.S. chip maker Intel Corp. for abusing its dominant
position in the microprocessor market was upheld by the EU's second
highest court. Intel is appealing the decision at the EU's top
court in Luxembourg.
Write to Tom Fairless at tom.fairless@wsj.com
Corrections & Amplifications
"In this digital era, smart card chips are used by almost
everybody," the EU's antitrust chief Joaquín Almunia said in a
statement. An earlier version of this article named him Joquin
Almunia.
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