MILAN (AP) – The European Commission has imposed substantial fines on prominent luxury fashion brands, including Gucci, Chloé, and Loewe, totaling more than 157 million euros (approximately $183 million). This significant financial penalty stems from the companies' anti-competitive practices that restricted independent retailers’ autonomy in setting prices for their luxury products.
The Commission articulated that the price-fixing activities perpetrated by these brands stand in violation of the European Union's competition regulations. Such actions not only undermine fair market conditions but also adversely affect consumers by limiting their purchasing options. Teresa Ribera, the Commission’s vice president, emphasized the seriousness of this affront to fair competition, stating, "The decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe. Fair competition and consumer protection apply to everyone, equally."
According to the Commission's findings, Gucci, Loewe, and Chloé collectively imposed restrictions on independent retailers, curtailing their ability to determine retail prices for high-end apparel, leather goods, footwear, and accessories both online and in brick-and-mortar stores. The brands mandated that retailers adhere to set recommended retail prices, defined maximum discount rates, and established sales periods that mirrored the brands' own direct sales operations.
This coordinated effort effectively stripped retailers of their pricing independence and diminished competition among them, as indicated by the Commission’s statements. As a result of their cooperation during the investigation, Gucci and Loewe received a more lenient penalty; Gucci's fine was halved, leading to a total of nearly 120 million euros, while Loewe's fine was reduced to 18 million euros. Chloé's fine was also moderated by 15%, bringing it down to approximately 20 million euros.
The European Commission's decision marks a pivotal moment in regulating the luxury fashion sector, reinforcing the principle that compliance with competitive market practices is non-negotiable. As the Commission continues to scrutinize corporate practices, the ruling serves as both a warning and a guideline for other companies operating within Europe, emphasizing the expectation of fair play in the marketplace.
