UPDATED 14:20 EDT / OCTOBER 30 2013

HP takes Blu-Ray industry to court over price-fixing

Hewlett-Packard has filed suit against seven of the largest optical drive makers in the world, accusing them of colluding to artificially inflate market prices over a six-year period. The hardware titan, which bought billions of dollars worth of drives in that timeframe, says that it has fallen victim to the conspiracy.

“HP paid higher prices for [optical disk drives] than it would have paid in a competitive market as a direct result of defendants’ and their co-conspirators’ unlawful conduct,” the suit reads. “HP brings this action to recover for injury to its business and property arising from billions of dollars of purchases of optical disk drives… at artificially inflated prices over several years.”

In two separate antitrust complaints filed with a federal court in Houston, where HP’s supply chain procurement operation is based, the company accuses the vendors of using tradeshows such as CES to pass on competitive information and coordinate their prices. The suit further alleges that the suppliers entered into agreements to set prices for drives sold to manufacturers in the U.S., including HP and Dell.

The lead defendants are Toshiba and LG. They are joined by Samsung, Sony, NEC, Panasonic. TEAC, Quanta Storage, Philips, Lite-On IT, BenQ, Pioneer and Sharp, as well as a number of joint ventures. Together, these companies control 90 percent of the global market for optical disk drives.

HP is seeking unspecified triple damages and an injunction against the companies. The lawsuit is based on a 2011 criminal case brought by the Department of Justice against HLDS, a joint venture between Hitachi and LC. As part of a settlement, the vendor admitted to engaging in “felonious price-fixing conduct with co-conspirators” between November 2005 and March 2009.


Since you’re here …

… We’d like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.