The Federal Cartel Office (Bundeskartellamt) has fined audio equipment manufacturers Sennheiser and Sonova a combined total of nearly €6 million for engaging in illegal resale price maintenance in the premium headphone market.
The fines also extend to three responsible employees who played key roles in the scheme.
According to the regulator, the two companies colluded with retailers to fix retail prices of high-end audio products sold under the Sennheiser brand, in a long-standing violation of competition law. The conduct, which began at least as early as 2015, continued until September 2022—even after Sennheiser’s consumer electronics division was sold to Sonova in March 2022.
Sennheiser, headquartered in Wedemark, Germany, exited the consumer electronics sector following the sale, but the anti-competitive practices were carried on by Sonova Consumer Hearing Sales Germany GmbH, also based in Wedemark. The case was initiated following a request for administrative assistance from Austria’s Federal Competition Authority (BWB), and included a dawn raid in September 2022.
Coordinated Pricing and Retail Pressure
Bundeskartellamt President Andreas Mundt said the case illustrates the harmful effects of vertical price-fixing—agreements between manufacturers and retailers that undermine market competition. “Sennheiser restricted free pricing in the distribution of premium headphones for a long period of time,” Mundt said. “Prices were monitored and adjusted when they fell below the manufacturer’s preferred levels.”
The investigation found that Sennheiser employees routinely coordinated end-consumer prices with authorized dealers, particularly when retail prices dipped below the recommended retail price (RRP). Dealers who undercut pricing expectations were contacted and pressured—often successfully—to raise prices. Monitoring tools, including price comparison platforms and custom software, were used to track compliance. The practice was internally disguised using “code language” under the guise of meeting selective distribution standards.
The illegal activity continued at reduced intensity under Sonova until the Cartel Office’s intervention.
Compliance Lapses and Concealment
Ironically, employees involved in the scheme had received antitrust compliance training, which the regulator noted was used to better conceal their actions rather than to ensure lawful conduct. “This demonstrates that compliance measures must not only be implemented in companies, but also genuinely practiced,” Mundt added.
Cooperation and Conclusion
Both companies cooperated with the investigation and reached a settlement agreement, which contributed to a reduced penalty. No fines were imposed on the involved retailers, with the Cartel Office citing discretionary reasons.
The case is part of a broader regulatory focus on vertical price-fixing in the consumer electronics sector. In 2021, Bose GmbH was similarly fined €7 million for related practices.
A detailed case report will be published shortly on the Federal Cartel Office’s official website.
