Fines for unlawful vertical price fixing: German Federal Cartel Office takes action against Sennheiser and Sonova

A recent case handled by the German Federal Cartel Office clearly shows that (antitrust) compliance training alone is no guarantee of compliant behavior. Companies would be well advised to continuously monitor their compliance with legal requirements.

In this case, the German authority imposed fines totaling almost six million Euros on the renowned audio product manufacturers Sennheiser and Sonova, as well as on three senior employees. The investigation focused on systematic interference in the free pricing of premium headphones – a clear violation of the antitrust prohibition on resale price maintenance, which significantly affected both retailers and consumers.

Compliance knowledge deliberately misused

Particularly noteworthy in this case is that employees had previously been trained in antitrust compliance, but deliberately used the knowledge they had gained to conceal violations of antitrust regulations. The training content, which was actually intended to minimize antitrust risks and promote legally compliant behavior, was misused in this case to deliberately conceal critical communication and make the interference in pricing appear formally unobjectionable. This deliberate circumvention led to a significant increase in the penalties imposed and underscores the seriousness with which the authorities treat such violations.

Focus on competition protection and consumer interests

The present case clearly illustrates the continuing importance in the EU antitrust authorities’ practice of combating resale price maintenance. The imposition by manufacturers of binding or de facto binding resale prices constitutes a significant violation of EU and German antitrust law which ultimately disadvantages consumers by significantly restricting price competition at downstream levels of the market.

Compliance as an ongoing task

Regardless of these specific incidents, regular antitrust compliance training remains an essential component of any compliance management system. However, training alone is not enough. The effectiveness of compliance measures depends crucially on their continuous monitoring and consistent enforcement within the company. Compliance officers therefore have a permanent responsibility to ensure the effective implementation of and compliance with antitrust standards.

Against this background, it is strongly advisable for companies to regularly evaluate and adapt their compliance systems. This not only effectively minimizes financial risks, but also significant reputational risks.

Our experts are happy to advise you on all compliance-related matters and, if needed, conduct customized training sessions at your company.

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