Home Appliances and Electronics (European Market)

Global Electronics and Home Appliances Market

Main Article: Home Appliances and Electronics (Global Market)

2024: Electrolux, Whirlpool, LG and Miele fined €611m for the cartel. They conspired and kept prices high

On December 19, 2024, the Antitrust Authority of France imposed fines on a number of manufacturers and distributors of household appliances for price collusion. In this practice, in particular, Electrolux, Whirlpool, LG and Miele were convicted, and the total amount of monetary penalties is 611 million euros.

In addition to the listed companies, Fnac Darty SA, Groupe SEB, BSH, Candy Hoover, Eberhardt, Smeg and Boulanger participated in the cartel. The regulator said in a statement that these manufacturers and distributors agreed to raise prices between February 2007 and December 2014 amid growing competition from online retailers. As a result, buyers were forced to overpay for equipment.

𝓲

Freepik

Manufacturers and distributors violated competition rules by introducing a vertical practice of fixing retail prices, the ministry said.

The largest individual fine of €189.5m is imposed on the SEB group, which includes international brands Tefal, Moulinex, Krups and Rowenta, regional brands Supor, Arno, Imusa, Samurai, Seb and Calor, and premium brands WMF, Lagostina, All-Clad and Silk. The SEB group said it "strongly disagreed" with the antitrust findings and denied allegations of non-compliance with competition rules.

The second highest penalty - €109m - is imposed on Fnac Darty SA, which operates the brands Fnac, Darty, Nature & Decouvertes, WeFix, France Billet, BilletRéduc, Vanden Borre and PC.Clinic. The appliance retailer recorded a reserve of €85m in the second quarter of 2023 and indicated additional financial expenses of €24m in 2024.

BSH, Candy Hoover, Eberhardt, Electrolux, Whirlpool, LG, Miele, Smeg and Boulanger have been fined from 100 thousand euros.^[1]

2021: Europe introduces 10-year warranty for all household appliances

On March 1, 2021, a new law came into force throughout the EU, which guarantees buyers of household appliances the so-called "right to repair." Manufacturers and sellers will have to provide customers with a ten-year guarantee to reduce the annual amount of electrical waste.

The government plans to reduce the environmental impact of manufactured goods, making them more durable and energy efficient, and the new law will be a huge step in a given direction.

On March 1, 2021, a new law came into force throughout the EU, which guarantees buyers of household appliances the so-called "right to repair"

Modern devices are often sold in glued or soldered form, so that special tools are required to repair them. Another problem is the lack of spare parts. Sometimes a single broken tooth on a tiny plastic sprocket can be a major stumbling block.

Under the new EU rules, manufacturers will have to guarantee the availability of spare parts for up to ten years, although some will only be provided to professional repair companies to ensure they are properly installed.

New devices must also be supplied with repair manuals and will be manufactured in such a way that, if necessary, when repairs are not possible, the equipment can be dismantled using conventional tools.

Every year, Europeans produce more than 16km of electrical waste per person. About half of that rubbish comes from broken appliances, and the EU only recycles about 40%, leaving a huge amount of potentially hazardous material.

In repair shops, you can find many devices that broke shortly after the warranty expired, which is why manufacturers are often accused of using the planned obsolescence. But knowing the appliance will last a decade could encourage consumers to choose more durable or easily repairable products.^[2]

Notes