The world’s largest manufacturers of LCD displays are being investigated for alleged price-fixing. Authorities from the United States Justice Department and their counterparts in Japan, Korea and Europe are looking into whether LCD companies colluded to raise prices during 2003 and 2004.

One dozen companies are being investigated including South Korean companies Samsung and LG Phillips, Japan’s Sharp and Seiko Epson and Taiwan’s AUO Optronics, Chi Mei Optoelectronics and Chunghwa Picture Tubes. Shares of LG Philips and Sharp dropped sharply after news reports of the investigation began hitting the wires.

The companies face huge fines and executives could go to jail, if they are found guilty of price-fixing. You may remember the big DRAM price fixing scandal in which the US Justice Department netted more than $700 million in fines. Several executives from Infineon, Samsung, Elpida and Hynix were given four to eight months in prison.