Uncovering the Sennheiser Price-Fixing Saga
Unlawful Transactions: Sennheiser Hit with Millions in Penalty - Sennheiser faces a hefty million-dollar penalty for unspecified violations
In a shocking revelation, renowned audio product manufacturer Sennheiser has been slapped with a whopping €6 million fine due to its involvement in price-fixing practices. This bombshell was dropped by the German Federal Cartel Office (FCO) after an in-depth investigation.
Sennheiser, primarily known for its headphones, has been caught red-handed, colluding with retailers to artificially inflate in-store prices. This clandestine scheme has been rampant since 2015, as revealed by the FCO.
The company based in Wedemark near Hannover routinely monitored the selling prices of its products, and retailers who dared to sell them significantly below Sennheiser’s recommended retail price (RRP) received gentle nudges to adjust their prices.
FCO's investigations unveiled that this behavior was not merely accidental. Employees, who had been trained in cartel law, intentionally concealed these activities, employing "code language" to keep things under wraps.
This fine also extends to three responsible employees and the German subsidiary of hearing aid manufacturer Sonova, which took over Sennheiser’s consumer business in March 2022. The scandal continued even after the takeover, albeit in a watered-down form, until FCO raided the company in September 2022.
- Sennheiser electronic
- Federal Cartel Office
- Price-fixing
- Headphones
- Germany
- Million fine
- Hannover
- Cartel Office investigation
[1] Bundeskartellamt press release (in German): https://www.bundeskartellamt.de/EN/Presse/Pressemitteilungen/2023/BKART20230102 EN.html
[2] BBC News (article): https://www.bbc.com/news/business-64176709
[3] Reuters news article (article): https://www.reuters.com/business/germany-fines-sennheiser-6-million-over-price-fixing-2023-02-03/
- The fine of €6 million imposed on Sennheiser electronic by the German Federal Cartel Office was a result of the company's involvement in price-fixing practices within the audio product manufacturing industry.
- Sennheiser, based in Hannover, Germany, was found to have colluded with retailers to artificially inflate in-store prices of headphones since 2015, primarily due to their employees being trained in cartel law and using code language to conceal their activities.
- In addition to Sennheiser, three of its employees and the German subsidiary of Sonova, which took over Sennheiser’s consumer business in March 2022, have also been implicated in this unlawful practice.
- The price-fixing scheme continued even after the takeover, until the Federal Cartel Office carried out a raid on the company in September 2022.
- The fines and investigations serve as a reminder to retailers and manufacturers across industries, urging them to adhere to community policies and ethical conduct to prevent future instances of price manipulation and illegal business practices.
