Leading fashion brands Gucci, Chloé, and Loewe are facing fines totaling more than 157 million euros for allegedly restricting independent third-party retailers from setting their own prices.
In all three cases, however, the fines were reduced in accordance with the firms’ cooperation with the commission.
Gucci, Chloé, and Loewe are headquartered in Italy, France, and Spain, respectively. All are renowned for their design, production, and distribution of high-end fashion products, which include apparel, leather goods, and various accessories.
According to the commission’s investigation, all three companies were involved in resale price maintenance (RPM) that prohibits both in-store and online independent retailers from setting their own prices for almost all of their products. The commission alleges that these infringements encompassed the entire European Economic Area (EEA).
This alleged behavior included directives for these retailers to not deviate from recommended sales prices or maximum discount rates and to set specific periods for sales. In some cases, it also prevented retailers from offering any discounts.
All three firms also allegedly monitored their retailers’ prices and contacted any who deviated from their policies.
“Today we have fined three European fashion houses for interfering with their independent retailers’ prices in breach of EU competition rules. In Europe, all consumers, whatever they buy, and wherever they buy it, online or offline, deserve the benefits of genuine price competition,” Teresa Ribera, executive vice-president for Clean, Just, and Competitive Transition, said in a statement.
“This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe, and that fair competition and consumer protection apply to everyone, equally.”
Rivera further noted that Gucci, Chloé, and Loewe tried to protect their own sales from competition from their retailers.
In addition, Gucci is accused of imposing online sales restrictions for retailers for a specific product line.
The commission contends the fashion houses ended their practices in April 2023, when it conducted unannounced inspections at their location.
Because all three firms cooperated with the commission, the fines levied were reduced. Both Gucci and Loewe received 50 percent reductions with fines now assessed at 119,674,000 euros and 18,009.000 euros, respectively. Chloé received a 15 percent reduction with a fine of 19,690,000 euros.
Fines imposed on companies found to be in breach of EU antitrust rules are paid into the general EU budget. The commission states that the fines help to finance the EU and reduce the taxpayer burden.
To make it easier for individuals or businesses to report any anti-competitive behavior, the commission has established a “whistle-blower” tool that offers anonymity.
The Epoch Times has reached out to Gucci, Chloé, and Loewe for comment regarding the commission’s announcement.
