German Cartel Office Fines Maxxis, Two Tire Distributors Over Illegal Pricing Practices

According to European Rubber Journal, the penalties involve Maxxis International GmbH and distributors Best4Tires Berlin GmbH and Reifen Müller GmbH & Co. KG. The publication reported that the investigation centered on arrangements affecting wholesale sales of Maxxis and CST tires in Germany and that the companies were accused of limiting independent price competition through agreements governing resale pricing.

The Bundeskartellamt said the companies used so-called “margin guarantee agreements” that effectively influenced downstream resale prices by ensuring wholesalers achieved predetermined profit margins on tire sales. In addition, the authority found that Maxxis established a price-monitoring system that tracked selling prices, including listings on the Tyre24 online marketplace, and intervened when prices fell below levels it considered acceptable.

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Maxxis serves as the exclusive German importer for tires produced by Taiwan-based Cheng Shin Rubber Industry Co. under the Maxxis and CST brands, while Best4Tires Berlin and Reifen Müller operate as tire wholesalers in the German market.

The Federal Cartel Office said the investigation began after receiving a cooperation application from another tire wholesaler. Following the launch of the proceedings, Maxxis discontinued the price moderation system cited by investigators and terminated the remaining margin guarantee agreements in July 2024, according to the authority.

In remarks accompanying the decision, Bundeskartellamt President Andreas Mundt said vertical resale price restraints generally harm consumers by limiting price competition and increasing the risk of inflated prices. He added that German competition law has prohibited such practices for decades and that the authority continues to pursue violations consistently.

The case illustrates regulators’ broader enforcement priorities surrounding vertical restraints in supply chains. While manufacturers may recommend resale prices under European Union competition rules, retailers and distributors must generally remain free to determine their own selling prices. Agreements or practices that directly or indirectly fix minimum resale prices can violate both German and EU competition law because they restrict independent price competition among distributors.

According to European Rubber Journal, the enforcement action reflects growing regulatory attention to pricing practices within automotive distribution networks. The publication reported that the case focuses on preserving competitive pricing in wholesale tire markets rather than allegations of horizontal price-fixing between competitors.

The Bundeskartellamt said cooperation by Maxxis and Best4Tires during the investigation was taken into account when determining the fines. The authority also noted that Maxxis and Reifen Müller agreed to a negotiated resolution of the proceedings. The penalty notices have not yet become legally final, and the parties retain the right to appeal before the Higher Regional Court in Düsseldorf.

Source: European Rubber Journal