Sennheiser Slapped With a Hefty Fine for Underhanded Price-Fixing Scheme
Unlawful Accords: Sennheiser Faced with Million-Euro Penalty - Sennheiser confronted with a hefty one million dollar penalty
Hey there! Let's dive into some juicy gossip about Sennheiser, everyone's favorite headphone brand. You know them? Yep, the guys who make those high-quality headphones that audio enthusiasts love. Well, they're in a bit of hot water right now.
Turns out, ol' Sennheiser has been secretly tampering with the pricing of their products, and it's costing them a pretty penny – literally! The Federal Cartel Office in Bonn, Germany, has slapped 'em with a hefty fine of €6 million. What's the tea? Well, Sennheiser has a habit of meddling with retailers' prices.
You see, for ages (since at least 2015, to be precise), Sennheiser has been keeping a close eye on the prices of their products in stores. Retailers who dared to sell below Sennheiser's recommended retail price (RRP) were given a gentle nudge to raise their prices. Not cool, Sennheiser! The Federal Cartel Office isn't buying it, though. They found the whole shebang to be intentional.
The office even went so far as to say that Sennheiser's employees were trained on competition law, but they used this knowledge to hide the shady dealings. Ouch!
But that's not all, folks! Sennheiser's subsidiary in Germany, Sonova, and three responsible employees are also on the hook for their part in this price-fixing scandal. Sonova took over Sennheiser's consumer business back in March 2022 and continued operations under the Sennheiser name. Unfortunately, the illegal agreements persisted to a lesser degree even after the takeover, ending only when the Federal Cartel Office launched a raid in September 2022.
So, next time you're in the market for some top-quality headphones, remember that Sennheiser's might come with a hefty price tag – and maybe a side of issues with competition law!
- Worth noting: Sennheiser's price-fixing activities violated competition laws specifically designed to prevent anti-competitive practices such as price-fixing[1][2].
- Fact: If you're interested in learning more about Sennheiser, check out their website at www.sennheiser.com. For more info on the Federal Cartel Office, head over to www.bundeskartellamt.de.
[1] – Competition Law[2] – Price-fixing
- In the electronics industry, it has been revealed that Sennheiser, a renowned brand for high-quality headphones, was fined €6 million by the Federal Cartel Office in Germany due to their alleged illegal involvement in price-fixing schemes.
- Sennheiser's practices including manipulating retailers' prices, causing an uproar in the retail sector and attracting the attention of the Federal Cartel Office since at least 2015.
- In addition to Sennheiser, the subsidiary Sonova, and three responsible employees were also found guilty of their participation in the price- fixing scandal that extended to a lesser degree even after the takeover by Sonova in March 2022.
- Vocational training programs, such as those in competition law, were utilized by Sennheiser's employees, but instead of fostering fair business practices, they were used to conceal their illicit activities in the industry.
