The Bundeskartellamt has imposed a fine of 783,900 euros on Pfanner Schutzbekleidung GmbH, Koblach, Austria, on account of vertical price-fixing. Pfanner Schutzbekleidung GmbH (in the following: Pfanner) and one of its affiliates, which has not been fined, sell high-quality and high-priced functional and protective clothing in Germany through resellers. Pfanner is accused of having restricted its partnering resellers in their pricing of trousers, jackets, tops, protective footwear, helmets (Protos Integral) and accessories. The proceeding was initiated after one of the resellers had disclosed these practices to the Bundeskartellamt and offered full cooperation on the matter.

Andreas Mundt, President of the Bundeskartellamt: “Manufacturers are allowed to issue non-binding price recommendations, but it has to be possible for resellers to determine their prices independently and unrestricted by the manufacturers’ recommendations. Vertical price-fixing agreements such as the one at hand usually put consumers at a disadvantage and often lead to excessive consumer prices. The Bundeskartellamt vigorously prosecutes such practices, which have already been prohibited since the early 1970s.”

Pfanner and the resellers involved, which have not been prosecuted, had agreed that each reseller should set their resale prices at the recommended resale price (RRP) level and, in any event, not go significantly lower. When offering special promotions, the resellers were not allowed to grant monetary discounts; instead, to maintain the price level of Pfanner/Protos products, they were to give away a small, cheap product, such as a T-shirt or safety glasses, with every high-priced Pfanner/Protos product as a non-monetary discount. This applied to shop prices as well as, in particular, to the prices the resellers offered on their websites and online shops. The agreed practices took place between early 2016 and late November 2021.

The Bundeskartellamt investigated this competition law infringement using the new powers it was granted by the 10th amendment to the German Competition Act (Gesetz gegen Wettbewerbsbeschränkungen – GWB) in early 2021 which are laid down in Section 82b GWB (official requests for information in administrative offence proceedings). Official requests for information are a tool for the Bundeskartellamt to request information and evidence from companies (and, under certain conditions, also from members of staff) by issuing a corresponding decision, that is without carrying out a dawn raid. The companies or persons concerned are obliged to answer all factual questions truthfully (they are not obliged to admit the existence of an infringement, however) and provide all documents requested. In the present case the first request for information was delivered with the assistance of the Austrian Federal Competition Authority.

In setting the fine the Bundeskartellamt took into account as a mitigating factor that Pfanner fully cooperated with the Bundeskartellamt, swiftly providing comprehensive and constructive answers to both requests for information, and that Pfanner agreed to a settlement. The order imposing the fine is final. The Bundeskartellamt did not initiate proceedings against the resellers involved.

A case summary (in German) in accordance with Section 53(5) GWB relating to this proceeding is available here.