Non-binding price recommendations for ophthalmic lenses to be discontinued

25.03.2009

In its proceedings against manufacturers of ophthalmic lenses on account of illegal price recommendations, the Bundeskartellamt has managed to get the major manufacturers of ophthalmic lenses, Essilor, Rupp and Hubrach, Rodenstock, Zeiss and Hoya, to give up their non-binding price recommendations from 1 April 2009 until further notice. Formal prohibition proceedings will be instituted against a smaller manufacturer who has refused to comply with the authority’s order to cease such recommendations.

So far, manufacturers of ophthalmic lenses have issued price recommendations that include the craftsmanship services rendered by the optician. According to the Bundeskartellamt’s assessment, a large number of small and medium-sized opticians have observed these price recommendations so that they have de facto had the same effect on the market as fixed or minimum prices would have had.

This system of price recommendations has now been prohibited by the Bundeskartellamt. In future, the opticians will calculate their prices increasingly independently, which will improve competition amongst them to the benefit of consumers.

The fact alone that the large manufacturers will give up their price recommendations will have the effect that approximately 90% of the market for ophthalmic lenses will be free from any recommendations in future. Non-binding price recommendations have a decade-long tradition in this market. In addition, each optician still has an expiring catalogue of manufacturers which contains non-binding price recommendations. For this reason, the Bundeskartellamt expects that the new calculation programmes for opticians now available on the market, which allow for independent calculations, will only have their full positive impact on competition in a few months.

The Bundeskartellamt will continue to observe the market and will monitor the competitive effects of the action taken, possibly even with a sector inquiry. It cannot be ruled out that non-binding price recommendations might be admissible again in the future. However, this would require customary practice in the sector to change as a result of the adjustment measures now taken to such a degree that non-binding price recommendations will lose their effect as fixed or minimum prices in future.

A different matter are the administrative proceedings still pending against individual manufacturers of ophthalmic lenses and the Central Association of Opticians (Zentralverband der Augenoptiker) who are suspected of having concluded anticompetitive agreements. More specific information on these proceedings cannot be provided at this stage.

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