The European Commission has fined five manufacturers of liquid crystal displays (LCDs) a total of €649 million for operating a cartel.

LCD panels are the main component of thin, flat screens used in televisions, computer monitors and electronic notebooks.

LG Display, of South Korea, and Taiwanese firms AU Optronics, Chimei InnoLux Corporation, Chunghwa Picture Tubes and HannStar Display Corporation were found to have fixed prices and exchanged information between October 2001 and February 2006.

Samsung Electronics was also found to have taken part in the cartel but the Commission imposed no fine on it because it was the first to provide information.

Joaquín Almunia, the European commissioner for competition, said: “Foreign companies, like European ones, need to understand that if they want to do business in Europe they must play fair.

“The companies concerned knew they were breaking competition rules and took steps to conceal their illegal behaviour.

“The only understanding we will show is for those that come forward to denounce a cartel and help prove its existence.”

The Commission said the cartel had a direct impact on customers in the European Economic Area because the vast majority of televisions, computer monitors and notebooks incorporating these LCD panels come from Asia.

In a separate decision, commitments by Visa Europe to significantly cut the amount it charges for debit card transactions have been made legally binding by the Commission.

Under the new rules, the multilateral interchange fee (MIF) will be cut to 0.2% of the value of a transaction, a reduction of about 60% on average for domestic payments.

Almunia said: “Lower inter-bank fees will trigger real benefits for merchants and consumers while more transparent rules will also improve competition in the cards markets.”

Also today, the Commission fined the Ordre national des pharmaciens – a French organisation which ensures pharmacists comply with professional duties – and its governing bodies €5m for imposing minimum prices on the French market for clinical laboratory tests.

The Commission said the actions hindered the development of groups of laboratories and damaged patients and the French state, which ended up having to pay more for clinical tests than if competition had been allowed.

Almunia said: “An association that represents and defends private interests cannot take the place of the state and issue its own rules restricting price competition in areas in which the state intended to maintain it, and hindering the development of undertakings on the market beyond what is provided for by law.”