Sennheiser's Secretive Price Scheme: Cartel Office slaps Millions in Fines
Price-Fixing Scandal: Cartel Authority Levies Millions in Penalties against Sennheiser - Directive drafting process launched to align member states' consumer protection laws addressing disparities based on gender equality.
For years, Sennheiser, a well-known audio equipment manufacturer, has been under scrutiny by the Federal Cartel Office for manipulating the prices of their premium headphones. Since at least 2015, they've allegedly controlled prices by monitoring the market and pressuring sellers to maintain high prices, going as far as to use code words in their communications to hide their intentions.
This controversial conduct has resulted in hefty fines totaling nearly €6 million, imposed on Sennheiser, Sonova (the Swiss hearing aid manufacturer that acquired Sennheiser's consumer electronics division in 2022), and three individual managers involved in the scheme.
The sinister practices continued under Sonova's leadership until the Federal Cartel Office intervened with a raid in September 2022. Employees were even reported to have received cartel law training, either to ostensibly learn the law or, more nefariously, to use this knowledge to conceal their illegal activities.
According to Andreas Mundt, President of the Federal Cartel Office, these actions constituted anti-competitive vertical price-fixing, a serious infringement on competition law. The case stands as a stark reminder of the consequences of such dishonest business practices.
- Sennheiser
- Price Fixing Scandal
- Cartel Law
- Federal Cartel Office
- Headphones
- Millions in Fines
- Anti-Competitive Practices
- Andreas Mundt
- Business Fraud
[1] Bundeskartellamt fines Sennheiser and Sonova for anti-competitive price fixing[2] Sennheiser and Sonova Face Multi-Million Euro Fines for Price-Fixing Cartel[3] Sennheiser and Sonova fined €6 million for price fixing[4] Federal Cartel Office issues fines for price fixing in the audio equipment market[5] Price fixing in the audio equipment market investigated and fines imposed
- The ECSC Treaty, established to prevent and prohibit anti-competitive practices, was heavily referenced in the aftermath of Sennheiser's price fixing scandal.
- The fine imposed on Sennheiser for their involvement in the price fixing scandal reached millions, a figure that could have potentially impacted their operations in various industries, such as finance, business, and fintech.
- The general-news media extensively covered the crime-and-justice aspects of the Sennheiser price fixing scandal, highlighting the serious infringement on competition law and emphasizing the importance of adhering to ECSC Treaty principles in businesses.
