The US Court of Appeals for the Seventh Circuit rules that cellphones manufacturer cannot recover overcharges to its non-U.S. subsidiaries that purchased price-fixed LCD panels abroad (Motorola / AU Optronics)

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The Seventh Circuit Court of Appeals ruled that Motorola cannot recover overcharges to its non-U.S. subsidiaries that purchased price-fixed LCD panels abroad, even though finished cellphones incorporating those panels were ultimately sold in the United States. The Court held that permitting such actions would be an unjustified interference with the right of foreign nations to regulate their own economies. Foreign LCD Panel Cartel Motorola and its foreign subsidiaries buy liquid crystal display (“LCD”) panels and incorporate them into mobile phones and other electronic devices that are eventually sold to U.S. consumers. Motorola filed suit under Section 1 of the Sherman Act against foreign LCD manufacturers, alleging that the prices of LCD panels were fixed in three separate types of

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Authors

  • Quinn Emanuel Urquhart & Sullivan (Brussels)
  • Office of the New York State Attorney General (New York)
  • Winston & Strawn (Washington)

Quotation

Stephen Mavroghenis, Beau W. Buffier, Heather Lamberg Kafele, The US Court of Appeals for the Seventh Circuit rules that cellphones manufacturer cannot recover overcharges to its non-U.S. subsidiaries that purchased price-fixed LCD panels abroad (Motorola / AU Optronics), 26 November 2014, e-Competitions November 2014, Art. N° 73811

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