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CD-R cost could drop after EU ruling

EU to impose dumping tax on Taiwan CD-R firms

The EU will impose an anti-dumping tax on all Taiwanese CD-R (compact disc-recordable) makers, a European Commission official said Thursday.

The EC, the executive body of the EU, conducted an investigation into the practices of Taiwanese companies after a complaint from European CD-R makers.

The Taiwanese were found to be selling discs below cost price, obstructing fair competition, the official said.

A general duty of 39.5 percent applies for all Taiwanese CD-R makers, except for 11 firms who were determined to have "less negatively" affected the European market.

The group of 11 will pay reduced duties of between 18.8 percent and 29.9 percent. This includes Ritek, the world's largest CD-R maker, which will pay 18.8 percent while its main competitor, CMC Magnetics, will have to pay the 39.5 percent top rate.

It's unclear if the tax will lead to a CD-R price hike in the EU. Representatives of the major CD-R vendors were not immediately available for comment.

Meanwhile, the EC is looking into other complaints from European manufacturers against foreign competitors, including Taiwanese manufacturers of personal fax machines and floppy disks.

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