The EU Commission has imposed fines totaling more than 157 million euros on the luxury fashion brands Gucci, Chloé and Loewe for anti-competitive pricing. For years, the three companies had dictated to independent retailers the prices at which they were allowed to sell their products, the Brussels authority said. “This anti-competitive behavior leads to higher prices and less choice for consumers,” the Commission said.
EU Commission Vice President Teresa Ribera, who is responsible for competition, emphasized that the decision sent a strong signal to the fashion industry and beyond.
Fixed prices for luxury goods
Gucci, Chloé and Loewe reportedly sought to ensure that their retailers applied the same prices and sales conditions as the fashion companies in their own stores. Among other things, specifications were made regarding sales prices and maximum discounts. In some cases, price reductions were completely prohibited.
Violations over the years
The anti-competitive practices reportedly lasted from April 2015 to April 2023 at Gucci, from December 2015 to April 2023 at Loewe and from December 2019 to April 2023 at Chloé. They only ended when the Commission carried out unannounced inspections at the company’s headquarters in Italy, Spain and France in April 2023. According to the commission, the three companies acted independently of each other. However, many retailers sold products from all three brands.
Fines reduced after cooperation
The penalties were lower than originally planned because the companies cooperated with the Commission. Gucci has to pay 119.7 million euros – 50 percent less than the company would have had to pay without cooperation. Loewe also received a 50 percent discount and has to pay 18 million euros. A fine of 19.7 million euros was imposed on Chloé, which corresponds to a discount of 15 percent.
Gucci and Loewe had provided the commission with evidence with significant added value at an early stage, it was said. All three companies expressly acknowledged the facts and violations of EU competition law.