Philips says it will "vigorously oppose" suggestions from the European Commission that it and Korean firm LG fixed the prices of LCD flat screens. In a statement issued by Philips, the company says:
"Philips received a Statement of Objections from the European Commission as a shareholder of LG Display on May 28th. In this document the European Commission alleges that the company is jointly and severally liable for anti-competitive conduct by LG Display (formerly LG Philips LCD Co) for the period in which the company, according to the European Commission, exercised joint control. Philips intends to vigorously oppose this allegation."
Philips also says "it is important to note that the Statement of Objections does not allege that Philips was directly involved in the infringement".
The investigation relates to a jointly-owned Philips and LG business – LD Display – which was set up in 1999. Philips sold its remaining share in the business on March 11th, 2009.
Earlier today Philips announced a 94 per cent drop in profits for April to June 2009, which fell to 45m Euros (£39m). Sales for the same period were 19 per cent down at 5.23bn Euros.
More after the break
Televisions and audio/video equipment saw the biggest fall in demand (down 30 per cent), but Philips says sales "could" now be rising.