United States v. Hui Hsiung

From 2001 to 2006, representatives of six companies that manufactured liquid-crystal display panels (TFT-LCDs) met in Taiwan to set target prices for the TFT-LCDs sold in the United States to stabilize the price of the TFT-LCDs. AU Optronics (AUO) (defendant) and two AUO executives, Hsuan Binn Chen and Hui Hsiung (defendants), participated in these meetings. Following these meetings, the companies produced meeting reports that were used by retail branches of the companies as price benchmarks for selling the TFT-LCDs to wholesalers. AUO used these reports to negotiate prices for the sale of TFT-LCDs to US customers. AUO, Chen, and Hsiung were charged and convicted of conspiracy to fix prices in violation of the Sherman Act. The evidence showed that the sale of price-fixed TFT-LCDs occurred in large part in the United States and that part of the price-fixing conspiracy took place in the US. AUO, Chen, and Hsiung appealed, arguing that the district court erred by failing to consider the foreign character of the relevant activities. Specifically, AUO, Chen, and Hsiung argued that because the case involved foreign companies, the court should have analyzed the circumstances under a rule of reason analysis rather than a per se rule. Likewise, AUO, Chen, and Hsiung contended that because most of the TFT-LCDs sold were not imported into the US, the connection to US commerce was insufficient to fall under US antitrust law.