Shares in Amplifon plummetted on Monday after the Italian Antitrust Agency (AGCM) announced the start of an investigation into the domestic market for hearing aids, having determined existing pricing mechanisms to be ‘insufficiently transparent.’
According to Amplifon, their global sales totaled at 2.1 billion euro in 2019, with Italy accounting for approximately 17% of sales. The AGCM released a statement, detailing their investigation of the hearing aid market due to the large impact it has on consumers and the national healthcare system. In 2019, it was estimated that out of 7 million Italians suffering from hearing problems, 30% use hearing aids and the figure is expected to rise in coming years as Italy’s population ages.
AGCM will begin gathering the views of participants in the market in order to further their research and investigation. In its announcement, the regulator expressed concerns regarding the transparency of Amplifon’s pricing mechanisms.
The AGCM authority is taking the necessary steps to ensure the transparency of pricing mechanisms surrounding the hearing aid market in Italy, as it is estimated the figures will continue to rise in the upcoming years with an aging population. With the investigation in full swing, it will be interesting to see the results of AGCM’s in-depth analysis and how this will affect the world’s largest maker of hearing aids, Amplifon.