German headphone manufacturer Sennheiser and Swiss hearing aid company Sonova must pay fines in Austria for engaging in price-fixing. The Cartel Court sentenced Sennheiser to pay €534,000 and Sonova €100,000 following a request by the Austrian Federal Competition Authority (BWB). The fines are final, as the BWB announced on Wednesday. Price-fixing is prohibited in Austria because it restricts competition and leads to higher prices.
Since 2022, the BWB had been investigating the two companies and, with the assistance of the German Federal Cartel Office, conducted a house search in Germany. According to the authority, Sennheiser and Sonova entered into vertical price-fixing agreements with retail partners concerning headphones of the “Sennheiser” brand “in order to promote uniformity and stability of retail prices, to inhibit price competition among retailers, and thus restrict competition.”
“Extensive” Cooperation Considered in Fine Amount
According to the BWB, Sennheiser and Sonova “fully and comprehensively” cooperated, which was taken into account when determining the amount of the fines. After the investigations began, the companies applied for leniency status. The BWB can request penalties of up to 10 percent of a company’s annual revenue from the Cartel Court.
Sonova—specialized in medical hearing aids—acquired from Sennheiser in 2021 the entire consumer division including wired and wireless headphones, in-ear models for daily use, accessories, and surround sound “soundbars” for TV and Hi-Fi. The German company retained the business for professional studio and DJ headphones (including larger headsets), microphones, wireless transmitters and systems, conference equipment, and other event technology.
