Motorola's Asian Supplier Price-Fixing Lawsuit Questioned by US Court

Advertisement
By Reuters | Updated: 14 November 2014 11:05 IST
A US appeals court appeared sceptical of mobile phone maker Motorola Mobility's attempt to sue several Asian suppliers for price-fixing, signalling a possible blow to the reach of US antitrust law overseas.

At a Chicago hearing on Thursday, a three-judge panel of the 7th US Circuit Court of Appeals questioned whether the allegations had enough connection to the United States to be heard in US courts.

Motorola Mobility, a unit of China's Lenovo Group Ltd, sued the suppliers in Chicago federal court in 2009, saying some of its subsidiaries had overpaid for liquid crystal display screens because of a conspiracy in Asia. Some screens entered the US market, the lawsuit said.

Advertisement

Judge Richard Posner, a member of the appeals panel, questioned the consistency of the company's legal positions.

"For tax purposes, you treat the foreign subsidiaries as separate, but for antitrust purposes, you treat them as part of Motorola," Posner said.

Advertisement

Motorola Mobility lawyer Thomas Goldstein said the company should be able to sue under US law because a former Chicago-based parent negotiated its supply contracts.

Lenovo bought Motorola Mobility in October for $2.91 billion (roughly Rs. 17,900 crores) from Google, which had bought it in 2012. Motorola Mobility says it paid the LCD makers more than $5 billion (roughly Rs. 30,792 crores) from 1996 to 2006.

Advertisement

Defendants named in the lawsuit are AU Optronics Corp, Chunghwa Picture Tubes Ltd, HannStar Display Corp, LG Display Co Ltd, Samsung Electronics Co Ltd, Samsung SDI Co Ltd, Panasonic Corp unit Sanyo, Sharp Corp and Toshiba Corp.

The appeals court ruled against Motorola Mobility in March but agreed to hear the case again after the Obama administration said the ruling threatened its ability to prosecute global price-fixing.

Advertisement

The US Justice Department, whose investigation of global LCD price-fixing led to more than $1.3 billion (roughly Rs. 8000 crores) in criminal fines, asked the court to find that the conspiracy directly affected US commerce.

The governments of Belgium and Japan filed briefs criticizing the reach of US antitrust law and urging the court to rule for the suppliers.

The appeals court could issue a decision any time.

The case is Motorola Mobility v. AU Optronics Corp, et al, 7th US Circuit Court of Appeals, No. 14-8003.

© Thomson Reuters 2014

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Alienware 15 Arrives on Flipkart: Is This the Ultimate Mid-Range Gaming Powerhouse?
  2. Samsung Galaxy A27 Review
  3. Xiaomi Smart Band 11 Active With a 1.47-Inch Screen Debuts: See Price
  4. Tecno Pova 8 Pro 5G Tonino Lamborghini Limited Edition Unveiled
  5. Xiaomi Power Bank 20000mAh 165W to Launch in India On This Day
  6. From Steve Jobs to John Ternus: Apple's CEOs and How They Shaped the Firm
  1. IFA 2026: Lenovo Unveiled New IdeaPad, Yoga and ThinkBook Laptops
  2. IFA 2026: Nvidia RTX Spark PCs, Local AI Tools Announced With October Launch Planned
  3. WhatsApp Reportedly Rolling Out Third-Party AI Agent Chats to Android Users
  4. Luna Band Now Available Globally: Check Price in India, Specifications and Features
  5. Pocket Bitcoin Data Breach Exposes Personal and Financial Information of 5,411 Customers
  6. Google Pixel Watch 5 Stephen Curry Special Edition Goes on Sale: Price, Features and More
  7. IFA 2026: Noise Master Buds Open With Sound by Bose Technology Unveiled
  8. Binance Warns of Phishing Scam Targeting Crypto Users With Fake Account Security Alerts
  9. Oppo Find X10 Pro Max, Find X10 India Launch Seems Imminent as Phones Appear on Certification Site
  10. Xiaomi Smart Band 11 Active Launched With Up to 21 Days of Battery Life; Smart Band 11 Price, Features Revealed
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.