AVM fined millions for price fixing for Fritz! box

The German Federal Cartel Office has imposed a substantial fine on AVM, the manufacturer of the popular Fritz! The fine of 16 million euros results from the unauthorized price fixing in the electronics trade.

Important facts:

• 16 million euro fine for price fixing
• Proceedings initiated by anonymous tip-offs
• Price fixing with electronics retailers

Background to the fine

The German Federal Cartel Office has accused AVM of illegally influencing the prices of its Fritz!Box products over a period of years. It was found that AVM worked together with several electronics retailers to raise prices and thus hinder free competition. These agreements included both minimum sales prices and directly fixed sales prices.

“We accuse AVM of having restricted free pricing in the sale of its products to end consumers for years ,” said Andreas Mundt, President of the Bundeskartellamt in the press release of July 2.

Investigation process and results

The proceedings were initiated in February 2022 following an anonymous report and further market information. During the investigation, it emerged that AVM employees were negotiating price agreements with electronics retailers.

These agreements generally related to an increase in these prices; in some cases, certain minimum sales prices (so-called target prices) were also demanded, which lay between the manufacturer’s RRP and the retailers’ purchase price.

Since at least mid-2019, AVM employees are also said to have used special software to monitor and set prices.

Reactions and consequences

The President of the Bundeskartellamt, Andreas Mundt, emphasized the importance of the fine as a clear signal against violations of this kind. When setting the fine, it was taken into account that the proceedings could be concluded by way of an amicable settlement, which accelerated the legal force of the fines.