Brussels imposes a fine of nearly 30 million euros on Philips

The European Commission fined Philips 29.8 million euros for setting minimum prices for the sale of electronic devices in online shops. The Dutch technology group should actually pay a higher amount, but because it has cooperated with the investigation, the fine is 40 percent lower, the commission reports Tuesday.

Technology companies Asus (Taiwan), Pioneer and Denon & Marantz of Japan) were fined. They have to pay respectively 63.5, 10.2 and 7.7 million euros in Brussels. These companies also received a 40% discount, in the case of Pioneer, a discount of at least 50%. In total, the European Commission imposed fines of 111.2 million euros in the case.

Threatened with sanctions

According to European Commissioner Margrethe Vestager (Competition), the four companies imposed price restrictions on online consumer electronics suppliers. When online shops sold their products below minimum prices, they were threatened with sanctions such as blocking deliveries. In addition, electronics manufacturers monitor prices online in an "advanced" way, which allows them to intervene quickly in case of lower prices.

The effect was that "millions of European consumers" had to pay more for kitchen appliances, hair dryers, headphones and other products, writes Vestager in a statement. It qualifies the price agreements as "illegal under the EU's competition rules".

Philips violated the rules of the end of 2011 to 2013 in France with products such as kitchen appliances, coffee machines, vacuum cleaners, home video systems, electric toothbrushes and hairdryers . Denon and Marantz and Pioneer were both wrong in the Netherlands. Consumers or businesses that have been fooled can sue for compensation.