The Austrian Federal Competition Authority (BWB) has filed (20 December) a request with the Cartel Court to impose fines totaling €634,000 on consumer electronics companies Sennheiser electronic SE & Co KG and Sonova AG for engaging in vertical price fixing.
Background
Sennheiser, a German company known for high-quality headphones and microphones, and Sonova, a Swiss provider of hearing solutions, were found to have violated antitrust laws by coordinating resale prices for Sennheiser-branded consumer electronics. The violations spanned from May 2015 to February 2022 under Sennheiser and from March 2022 to September 2022 under Sonova, which had acquired Sennheiser’s Consumer Electronics division in a 2021 carve-out.
Vertical price fixing involves agreements between companies at different levels of the supply chain to control resale prices, typically resulting in higher consumer costs. Such practices are classified as “hardcore restrictions” under antitrust law due to their direct impact on price competition.
Investigation and Findings
The BWB launched its investigation in 2022, conducting a house search at the companies’ German locations in collaboration with the German Federal Cartel Office. Evidence revealed that both Sennheiser and Sonova systematically monitored and enforced resale price agreements with resellers and trading partners, aiming to raise end-user prices.
Leniency and Cooperation
Both companies filed leniency applications in 2023, cooperating fully with the investigation. This cooperation was taken into account when determining the fines:
- €534,000 for Sennheiser.
- €100,000 for Sonova.
Implications
The BWB emphasized that price-fixing agreements severely harm competition and consumers by restricting price flexibility in the market. The proposed fines highlight the importance of strict enforcement against such practices to protect fair competition.
The Cartel Court will now decide on the BWB’s application, which underscores Austria’s commitment to addressing serious antitrust violations.
