Sennheiser's Shady Price Manipulation: Cartel Office Slaps Millions in Fines for Cartel Conspiracy
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In a shocking revelation, Sennheiser has been accused of curbing free price formation in the premium headphone market as per the President of the Federal Cartel Office, Andreas Mundt. The tech giant has been involved in fixing consumer prices at least since 2015.
It has been uncovered that Sennheiser intervened in price adjustments, particularly when their products fell significantly below the recommended retail price (RRP), as revealed by the Federal Cartel Office. Retailers usually surrendered to these price adjustments. Mundt highlighted that the company's employees even received cartel law training, albeit they used this knowledge to hide price binding, rather than abiding by it.
Joining Sennheiser in the hot seat is Sonova Consumer, the German subsidiary of the Swiss hearing aid manufacturer, which took over Sennheiser's consumer electronics division in 2022. The illegal agreements carried on post the acquisition, between March and September 2022, until the Federal Cartel Office stepped in with a search.
- Sennheiser electronic
- Price manipulation
- Cartel conspiracy
- Federal Cartel Office
- Headphones
- Multi-million dollar fines
- Penalty
- Andreas Mundt
According to recent data, the fines imposed by the Federal Cartel Office amount to nearly €6 million, serving as a clear message against such anticompetitive practices. This action underscores the importance of fair competition in the consumer electronics market, especially in the premium headphone sector. Additionally, the inclusion of three managers in the penalty suggests that key individuals were involved, emphasizing the personal responsibility of executives in adhering to antitrust laws.
[1] "The Federal Cartel Office takes action against price fixing in the premium headphone market." (Federal Cartel Office, 2022).[2] "German Federal Cartel Office slaps multi-million dollar fines on Sennheiser and Sonova for cartel conspiracy in consumer electronics market." (Reuters, 2023).
- The Federal Cartel Office has imposed nearly €6 million in fines on Sennheiser electronic for their involvement in price manipulation and cartel conspiracy in the premium headphone market.
- Andreas Mundt, the President of the Federal Cartel Office, highlighted Sennheiser's price manipulation as a clear breach of antitrust laws and a threat to fair competition.
- The illegal agreements were discovered by the Federal Cartel Office in 2022, both before and after Sennheiser's consumer electronics division was acquired by Sonova Consumer.
- The premium headphone industry is urged to remain vigilant against anticompetitive practices, ensuring price formation follows market dynamics rather than deliberate cartel conspiracies.
