Sennheiser Hit with Millions in Fine for Underhanded Price-Fixing Scheme
Unlawful Transactions: Sennheiser Faces Heavy Penalty with Millions in Finances - Sennheiser faces hefty million-dollar penalty
Nothing but quality headphones from Sennheiser, based in Wedemark near Hannover, Germany. But their reputation is tarnished following a whopping €6 million fine issued by the Federal Cartel Office (Bundeskartellamt) for participating in intentional price-fixing activities.
According to reports, Sennheiser employees were apparently trained on competition law, yet they employed this knowledge to hide their destructive practices. Since at least 2015, Sennheiser repeatedly meddled with retailers, insisting they raise in-store prices if they were found selling below the recommended retail price (RRP).
Three culpable employees and the German subsidiary of Swiss hearing aid manufacturer Sonova, who acquired Sennheiser's consumer business in March 2022, will also bear a piece of the blame. The price-fixing continued for a while post-acquisition, eventually leading to a raid by the Federal Cartel Office in September 2022.
- Sennheiser electronic
- Federal Cartel Office
- Headphones
- Hefty Fine
- Price-Manipulation
- Germany
- Bonn
- Sonova Consumer
- Hannover
- Illegal Agreements
- The Federal Cartel Office in Bonn, Germany, fined Sennheiser electronic, a headphone manufacturer based in Hannover, €6 million for forming illegal agreements with retailers that resulted in price manipulation.
- Sennheiser employees, despite reportedly being trained on competition law, had allegedly employed this knowledge to pressure retailers to raise in-store prices if they were found selling below the recommended retail price (RRP).
- The illegal practices continued even after the acquisition of Sennheiser's consumer business by Sonova Consumer, leading to a raid by the Federal Cartel Office in September 2022.
- Three employees of Sennheiser and the German subsidiary of Swiss hearing aid manufacturer Sonova will also share the responsibility for the price-fixing scheme that tarnished Sennheiser's reputation for providing quality headphones.
