The Bundeskartellamt, Germany's competition authority, has levied fines amounting to €11.9 million against Maxxis International GmbH, Best4Tires Berlin GmbH, and Reifen Müller GmbH & Co. KG for engaging in vertical price fixing in the tire wholesale market.

Maxxis, the sole importer of tires from Taiwanese manufacturer Cheng Shin Rubber Ind. Co. Ltd. in Germany, was found to have restricted price formation for its Maxxis and CST tire brands. The investigation was initiated following a cooperation request from another tire wholesaler.

Andreas Mundt, President of the Bundeskartellamt, emphasized that vertical price fixing harms consumers by leading to inflated prices. He stated that such practices have been prohibited since the 1970s and that margin guarantee agreements are illegal when they restrict retailers' pricing freedom.

Under pressure from wholesalers Berlin Tyre and Reifen Müller, Maxxis entered into margin guarantee agreements with these companies at the end of 2015, ensuring them a specific margin per tire sold. These agreements were based on a mutual understanding that the wholesalers would not act as price leaders but would market the tires defensively.

In subsequent years, Maxxis established a pricing moderation system with more wholesalers, which involved providing non-binding price recommendations and monitoring actual selling prices, particularly on the online platform Tyre24. This system was facilitated by the ability of companies to register as both suppliers and buyers on Tyre24.

Following the initiation of the antitrust proceedings, Maxxis ceased its pricing moderation and terminated the remaining margin guarantee agreements in July 2024. The Bundeskartellamt also fined B4T Berlin and Reifen Müller for their roles in pushing for these agreements and benefiting from significant compensation payments.

Mitigating factors in the fine assessment included the cooperation of Maxxis and B4T Berlin with the Bundeskartellamt during the investigation. Maxxis and Reifen Müller have agreed to a settlement, but the fines are not yet final and can be appealed to the Düsseldorf Higher Regional Court, which will review the allegations both factually and legally.