The men, a father and his son from western Germany, pleaded guilty when the trial against them began on Tuesday.
55-year-old Michael Schumacher has not been seen in public since he was involved in a serious skiing accident in the French Alps in 2013, in which he suffered severe brain damage.
The two men are suspected of having demanded approximately 170 million kronor from Schumacher's family. They allegedly threatened to otherwise publish private pictures of the seven-time F1 World Champion taken both before and after the accident.
A third person, a former employee of the Schumacher family, is accused of having sold the image material to the men. He was also brought to court on Tuesday, but did not admit to any crime.
The trial is expected to continue until mid-February.
