Final Report of the Hearing Officer (1)

Case AT.40469 — Denon & Marantz

(2018/C 335/04)

(1) The draft decision addressed to D&M Germany GmbH (‘D&M Germany’), D&M Europe BV (‘D&M Netherlands’) and D&M Holdings Inc. (together, ‘D&M’) finds that D&M infringed Article 101 TFEU through practices aimed at restricting the ability of retailers in Germany and in the Netherlands to determine their resale prices independently.

(2) The investigation started with unannounced inspections at the premises of a retailer in Germany.

(3) On 2 February 2017, the Commission initiated proceedings within the meaning of Article 2(1) of Regulation (EC) No 773/2004 (2) against D&M. On 21 April 2017, the Commission addressed a request for information to D&M Netherlands, to which D&M replied on 9 May 2017.

(4) Shortly after the initiation of proceedings, D&M indicated its interest to cooperate with the Commission. On […], D&M submitted further evidence regarding the relevant conduct.

(5) On […], D&M submitted a formal offer to cooperate (‘Settlement Submission’). The Settlement Submission contains: — an acknowledgement of D&M’s liability for two single and continuous infringements summarily described as regards their object, the main facts, their legal qualification, including the role and the duration of D&M Germany, D&M Netherlands and D&M Holdings Inc.’s participation in the two infringements; — an indication of the maximum amount of the fine D&M expects to be imposed by the Commission and which it would accept in the context of a cooperation procedure; — the confirmation that D&M has been sufficiently informed of the objections the Commission envisages raising against it and that it has been given sufficient opportunity to make their views known to the Commission; — the confirmation that D&M does not envisage requesting further access to the file or requesting to be heard again in an oral hearing, unless the Commission does not reflect its Settlement Submission in the statement of objections (the ‘SO’) and the decision; — the agreement to receive the SO and the final decision in English.

(6) On 13 June 2018, the Commission adopted the SO, to which D&M replied by confirming that it reflected the content of its Settlement Submission.

(7) The infringements found and the fines imposed in the draft decision correspond to those acknowledged and accepted in the Settlement Submission. The amount of the fines is reduced by 40 % on the ground that D&M has cooperated with the Commission beyond its legal obligation to do so by: (i) providing additional evidence representing significant added value with respect to the evidence already in the Commission’s possession as that evidence strengthened to a large extent the Commission’s ability to prove the infringements; (ii) acknowledging the infringements of Article 101 TFEU in relation to the conduct; and (iii) waiving certain procedural rights, resulting in administrative efficiencies.

(8) In accordance with Article 16 of Decision 2011/695/EU, I have examined whether the draft decision deals only with objections in respect of which D&M has been afforded the opportunity of making known its views. I conclude that it does.

(9) Overall, I consider that the effective exercise of procedural rights has been respected in this case.

Brussels, 12 July 2018. Wouter WILS

(1) Pursuant to Articles 16 and 17 of Decision 2011/695/EU of the President of the European Commission of 13 October 2011 on the function and terms of reference of the hearing officer in certain competition proceedings (OJ L 275, 20.10.2011, p. 29).

(2) Commission Regulation (EC) No 773/2004 of 7 April 2004 relating to the conduct of proceedings by the Commission pursuant to Articles 81 and 82 of the EC Treaty (OJ L 123, 27.4.2004, p. 18).