Phonak issued with a fine by the German competition authority

Phonak GmbH, the German subsidiary of Switzerland’s Sonova Holding AG (SIX:SOON), has today been issued with a fine by the German competition authority (BKA) following inquiries undertaken by the latter as part of an investigation into the German hearing systems market. Despite the allegations, Sonova was able to reach an agreement with the German Federal Cartel Office and will not appeal against the decision.

The Federal Cartel Office has accused Phonak GmbH of violating the German Act against Restraints on Competition. Phonak has denied that it has systematically influenced the retail prices of hearing aid audiologists, but will not take any further steps against the decision following today’s agreement with the Federal Cartel Office. The fine amounts to EUR 4.2 million and will therefore not have any affect on the earnings outlook of Sonova Holding AG for the current financial year.