Gucci, Chloé, and Loewe Fined a Total of Over 157 Million Euros

TALLINN - The European Commission is fining fashion companies Gucci, Chloé, and Loewe a total of over 157 million euros for resale price maintenance, as this practice violates EU competition rules.

The Commission's investigation revealed that the three companies restricted their retail partners' ability to freely set retail prices for Gucci, Chloé, and Loewe products, both online and in physical stores. Price fixing is anti-competitive because it raises prices and reduces choices for consumers.

All three companies cooperated with the Commission during the investigation, which resulted in a final fine lower than the initial amount, but still totaling over 157 million euros.

Gucci, Chloé, and Loewe are fashion companies headquartered in Italy, France, and Spain, respectively. They are all involved in the design, manufacturing, and marketing of high-end fashion products, including clothing, leather goods, and various accessories.

The Commission's investigation found that all three fashion companies engaged in resale price maintenance. They restricted their online and brick-and-mortar retailers-who are independent resellers-from freely setting retail prices for products designed and sold by Gucci, Chloé, and Loewe, such as clothing, leather goods, footwear, and fashion accessories. The infringements covered nearly all products and the entire European Economic Area (EEA).

Specifically, the three fashion companies interfered with retailers' commercial strategies by imposing restrictions on recommended retail prices, maximum discount rates, and specific sales periods. In certain cases, they also temporarily prohibited retailers from offering discounts. Gucci, Chloé, and Loewe sought to have their retailers apply the same prices and sales conditions as they did in their own direct sales channels. Retailers generally complied with the companies' pricing policies, either from the outset or after being required to do so.

This anti-competitive conduct by Gucci, Chloé, and Loewe deprived retailers of their pricing independence and restricted competition. At the same time, Gucci, Chloé, and Loewe sought to protect their own sales channels from competition from retailers.

Additionally, Gucci imposed online sales restrictions on a specific product line, requesting its retailers to cease selling the product online. Gucci's retailers complied with these instructions.

All three fashion companies ceased their anti-competitive activities in April 2023, when the Commission conducted unannounced inspections at their premises.

The decision, announced on Tuesday, concludes that in all three cases, the anti-competitive conduct constitutes an agreement or other restrictive business practice that may affect trade and prevent or restrict competition in the single market (Article 101 of the Treaty on the Functioning of the European Union and Article 53 of the EEA Agreement).

The three fashion firms acted independently of one another. However, the duration of the three cases overlaps, and many retailers sell products from all three designers. All three decisions concern top companies in the fashion industry and send a strong warning signal to the entire sector against resale price maintenance in both online sales and traditional stores. Such anti-competitive practices raise prices and reduce consumer choice.