Agreement on tyre prices - Cartel Office imposes fines

Germany’s Federal Cartel Office has imposed fines totaling nearly 12 million euros on three companies over alleged price-fixing agreements involving tire sales. The companies, Maxxis International GmbH, Best4Tires Berlin GmbH, and Reifen Müller GmbH & Co. KG, are accused of restricting price formation for tires under the brands Maxxis and CST on Germany's wholesale tire market. The fines were announced after an investigation into practices deemed to have limited competition and unfairly influenced pricing. The investigation centered around so-called “margin guarantee agreements” signed by Maxxis with two major tire wholesalers starting in late 2015. These agreements allegedly ensured a fixed profit margin per tire sold, effectively limiting the freedom of wholesalers to set their own prices. According to the Federal Cartel Office, these arrangements included specific price guidelines, which restricted the ability of retailers to determine their own selling prices. Over time, similar agreements were reportedly made with additional wholesalers. In addition to these margin guarantees, Maxxis was found to have implemented a system for monitoring and adjusting prices on the online platform Tyre24. This system allowed the company to intervene when prices appeared too low from its perspective. Such actions, according to the cartel authority, further constrained the autonomy of wholesalers in setting competitive prices. The probe was initiated following a cooperation request from another tire wholesaler. After the investigation began, Maxxis ceased its controversial price moderation practices and terminated existing margin guarantee agreements in July 2024. The Federal Cartel Office emphasized that vertical price controls typically harm consumers by potentially leading to higher prices. These practices have been illegal since the early 1970s, and the office has consistently pursued them to protect free competition. The fines imposed were adjusted based on the level of cooperation shown by the companies during the investigation. Both Maxxis and Best4Tires Berlin cooperated fully with the authorities, while Maxxis and Reifen Müller agreed to a mutually acceptable resolution of the case. However, the fines are not yet final, and appeals can still be filed. If such an appeal occurs, the Higher Regional Court in Düsseldorf would be responsible for making the final decision. The Federal Cartel Office highlighted that margin guarantee agreements become illegal under antitrust law when they include price-setting instructions that limit the freedom of retailers to determine their own prices. This case underscores the ongoing enforcement of long-standing prohibitions against such practices. The total amount of fines imposed could significantly impact the annual statistics for penalties related to cartels, as the office reported a notable decrease in fines issued in 2025 compared to the previous year. The companies involved in this case represent different segments of the tire industry. Maxxis serves as the sole importer of tires produced by the Taiwanese manufacturer Cheng Shin Rubber in Germany, including the Maxxis and CST brands. Best4Tires Berlin and Reifen Müller operate as major tire wholesalers. Their involvement highlights the complexity of supply chains in the automotive industry and the potential for collusion at multiple levels. The Federal Cartel Office reiterated its commitment to enforcing antitrust laws rigorously, ensuring fair competition and protecting consumer interests. As the legal process continues, the outcome of any potential appeals will provide clarity on the enforceability of the fines and the broader implications for the industry.