Sennheiser Caught in Price-Fixing Scandal: Cartel Office Slaps €6M Fine
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The German tech giant, Sennheiser, has found itself in hot water, charged with price fixing by the Federal Cartel Office. The company allegedly violated competition laws by dictating consumer prices for premium headphones since at least 2015.
In instances where products dipped significantly below the recommended retail price (RRP), Sennheiser reportedly intervened, pressuring sellers to adjust their prices. This manipulation continued even after the company was acquired by Sonova in March 2022, according to the Federal Cartel Office.
Notably, employees at Sennheiser were undergoing cartel law training, yet the knowledge was used to camouflage the price binding instead of adhering to cartel law principles.
In addition to Sennheiser, Sonova Consumer Hearing Sales Germany GmbH, Sonova's German subsidiary, and three individual employees are also targeted in this penalty.
- Sennheiser electronic
- Price Fixing
- Federal Cartel Office
- Headphones
- Million Fine
- Penalty
- Cartel Office
- Andreas Mundt
- Sonova Consumer Hearing Sales Germany GmbH
The fine totals near €6 million, serving as a stark reminder of the consequences of anti-competitive practices in the market. The Bundeskartellamt's decision underscores its aggressive stance against vertical agreements that suppress free competition.
For years, Sennheiser monitored and controlled retail prices for premium headphones using online price comparison services and specialized software. Whenever prices dipped below the RRP, pressure was applied to sellers to restore the premium positioning in the market. Internal communications among employees involved the use of coded language to conceal the coordination, carefully avoiding detection.
After Sonova's acquisition, the price-fixing practices continued under their management, as the Bundeskartellamt uncovered during its investigation in September 2022. The combined actions of Sennheiser and Sonova in such long-term price-fixing constitute a serious violation of competition laws and are deemed unacceptable in the premium audio products sector.
- Sennheiser electronic, despite undergoing cartel law training, allegedly continued to manipulate prices for premium headphones, a practice that violated competition laws as stated by the Federal Cartel Office, resulting in a €6 million fine.
- The bundeskartellamt's decision to penalize Sennheiser, Sonova Consumer Hearing Sales Germany GmbH, and three individual employees serves as a reminder of the consequences of anti-competitive practices within industries like finance, business, and electronics.
