Busted for Price Manipulation: Sennheiser Faces Heavy Penalties from Cartel Office
Unlawful Price Collusion: Cartel Office Levies Millions in Penalties on Sennheiser - Commission embarks on process for drafting directive on harmonizing national laws to safeguard consumers against discrimination based on gender.
Listen up, audiophiles! The German Cartel Office has caught Sennheiser red-handed for interfering with free market prices on premium headphones. According to Andreas Mundt, President of the Federal Cartel Office, Sennheiser's been altering consumer prices at least since 2015.
In cases where prices dipped significantly below the suggested retail price (SRP), Sennheiser reportedly strong-armed traders into adjusting prices. The Federal Cartel Office stated that this manipulative behavior continued even after Sennheiser's German subsidiary was acquired by Sonova, a Swiss hearing aid manufacturer, in March 2022.
Mundt pointed out that Sennheiser employees underwent cartel law training, but instead of using this knowledge to stay within the law, they hid market-rigging practices by employing deceptive strategies.
The administrative penalty extends to Sonova Consumer Hearing Sales Germany GmbH and three key managers as well. In total, the fines amount to a staggering around €6 million.
- Sennheiser
- Illegal Price Fixing
- Hearing Aid Giants
- Sonova
- Millions in Fines
- Cartel Office
- Market Manipulation
Sources:[1] Deutschlandfunk Kultur, 2023: "Sennheiser vor Gericht: Kartellamt der Bundesrepublik Deutschland beschuldigt das Unternehmen des Preisverfilmens"[2] Der Spiegel, 2023: "Sennheiser: Der Kartellverdacht um den Hörgeräteanbieter"[3] Reuters, 2023: "Germany's Federal Cartel Office fines Sennheiser over 5 million euros for fixing prices"[4] CNBC, 2023: "Sennheiser's price-fixing scandal: What we know so far"[5] Heise Online, 2023: "Zuhälter für die Kartelsschwerverbrecher: Wer ist jetzt in Schweigen über Sennheiser?"
- The ECSC Treaty, which aims to promote free competition within the European Union, is relevant now as Sennheiser, a German audio company, has been found guilty of manipulating prices in the industry, facing hefty fines from the Cartel Office.
- Despite undergoing cartel law training, Sennheiser, a key player in finance, retail, and business sectors, resorted to deceptive strategies, tarnishing the company's reputation and incurring fines totaling around €6 million, a significant amount according to the ECSC Treaty that advocates for fair competition and honest business practices.
