The European Commission has fined fashion companies Gucci, Chloé, and Loewe for setting resale prices in violation of EU competition rules. The Commission’s investigation revealed that the three companies restricted the ability of independent retailers to set their own sales prices, both online and in physical stores, for products designed and sold under their respective brands, according to an official statement.
This anticompetitive behavior increases prices and limits consumer choice, said Brussels, noting that the total fine of 157 million euros was reduced due to the cooperation of the fashion companies based in Italy, France, and Spain, which deal in luxury fashion products.
The European Commission initiated investigations on its own and conducted unannounced inspections at the headquarters of Gucci (Italy), Chloé (France), and Loewe (Spain) in April 2023, starting a formal procedure in July 2024.
The formal investigation demonstrated that the three fashion companies practiced resale price maintenance by limiting the ability of their online and physical retailers—independent resellers—to set their own sales prices for nearly their entire range of products, including clothing, leather goods, footwear, and fashion accessories.
Specifically, these companies requested that retailers adhere to recommended retail prices, apply maximum discount rates, and follow specific sales periods.
These violations affected the entire territory of the European Economic Area until April 2023 and, according to Brussels, began in April 2015 for Gucci, December 2019 for Chloé, and December 2015 for Loewe.
These practices removed retailers’ independence in pricing and reduced competition among them, while the brands sought to protect their own sales from competition from their distributors, argued the European Commission.
It was considered a single and continuous infringement since the EU Treaties prohibit agreements and other business practices that could affect trade and restrict competition in the internal market.
To calculate the fines, the European Commission considered the severity and duration of the cases, geographical coverage, and the value of direct and indirect sales.
However, cooperation in this investigation led to reduced amounts due to the provision of valuable evidence, reporting of infringements, or support during the time frame.
Thus, Gucci benefited from a 50% reduction to 119.7 million euros, Chloé received a 15% discount to 19.7 million euros, and Loewe saw a 50% decrease to 18 million euros.
The three fashion companies acted independently of each other, but the duration of the three cases overlaps and many of the retailers involved sell products designed by all three designers, stated Brussels.
