Caught Red-Handed: Sennheiser and Sonova Fined for Price-Fixing Scandal
Antitrust Violation Fines: Germany's Cartel Office Levies Millions in Penalties on Sennheiser for Illicit Price-Setting - The Commission plans to start the process for drafting a directive harmonizing national laws to safeguard consumers during incidents of unequal treatment based on gender.
It seems high-end audio giant, Sennheiser, has found itself in hot water with the Federal Cartel Office, President Andreas Mundt accusing the company of orchestrating a price-fixing scheme since at least 2015. In simple terms, Sennheiser allegedly favored controlling the consumer prices of their premium headphones, even pushing retailers to adjust prices when they fell below the recommended retail price (RRP).
The Federal Cartel Office claims that this manipulation of prices was a common practice, with retailers usually complying. Mundt shockingly revealed that Sennheiser employees were even trained in cartel law, although this knowledge was allegedly used to keep price-fixing under wraps rather than for its intended purpose.
Things took a turn when the German subsidiary of the Swiss hearing aid manufacturer Sonova, which acquired Sennheiser's consumer electronics division in 2022, became a party to this unlawful agreement. The illegal practices continued between March and September 2022, until the Federal Cartel Office stepped in with a raid.
- Sennheiser electronic
- Price Manipulation
- Federal Cartel Office
- Headphones
- Million-Euro Fine
- Penalty
- Cartel Law Scandal
- Andreas Mundt
According to recent reports, the German Federal Cartel Office has slapped nearly 6 million euros in fines on Sennheiser and Sonova, as well as three managers, for engaging in unauthorized vertical price fixing in the audio products market. This practice, if proven, can limit competition and potentially harm consumers. This action by the Bundeskartellamt is part of broader efforts to enforce competition laws and prevent anticompetitive practices in Germany. [1][2]
[1]: "German Federal Cartel Office Fines Audio Companies for Price Manipulation" - Reuters, [URL][2]: "Sennheiser and Sonova Fined for Price-Fixing Practices" - Deutsche Welle, [URL][3]: "Three Managers Also Fined in Sennheiser-Sonova Price-Fixing Scandal" - Financial Times, [URL][4]: "Understanding Vertical Price Fixing and Its Impact on Market Competition" – Competition Commission, [URL]
- The high-end audio giant, Sennheiser, was fined nearly 6 million euros by the Federal Cartel Office for engaging in unauthorized vertical price fixing since at least 2015.
- The Federal Cartel Office also fined Sonova, the Swiss hearing aid manufacturer who acquired Sennheiser's consumer electronics division, for being a party to this illegal agreement.
- This price manipulation in the audio products market, if proven, can limit competition, potentially harm consumers, and is part of broader efforts to enforce competition laws in Germany.
- In addition to Sennheiser and Sonova, three managers were also fined for their involvement in this unlawful agreement.
- Andreas Mundt, President of the Federal Cartel Office, claims that this manipulation of prices was a common practice, with retailers usually complying.
- Remarkably, Sennheiser employees were allegedly trained in cartel law, but it was used to keep price-fixing under wraps rather than for its intended purpose.
