The European Commission has fined over EUR 157 million in full for luxury clothing brands Gucci, Chloé and Loewe for anti-competitive pricing practices. The Brussels-based Authority stated that these 3 companies had for years dictated to independent retailers prices at which they could sale their products. "This anticompetitive behaviour leads to higher prices and little choice for consumers", the Commission said.
Vice-President of the European Commission on Competition Teresa Ribera (56) stressed that this decision was a clear signal for the fashion manufacture and not only.
Setting prices for luxury goods
According to information, Gucci, Chloé and Loewe have made efforts to guarantee that their retailers usage the same prices and sales conditions in their stores as fashion companies. Among another things, they have established guidelines on sales prices and maximum discounts. In any cases, rebates were completely prohibited.
Infringements over years
Anti-competitive practices were to proceed from April 2015 to April 2023 for Gucci, from December 2015 to April 2023 for Loewe and from December 2019 to April 2023 for Chloé. These ended only in April 2023, erstwhile the Commission carried out unannounced checks at the premises of the companies in Italy, Spain and France. According to the Commission, 3 companies operated independently of each other. However, many retailers sold products of all 3 brands.
Penalties reduced after cooperation
The penalties were lower than originally planned due to the fact that the companies cooperated with the Commission. Gucci must pay EUR 119.7 million – 50% little than the company would gotta pay without cooperation. Loewe besides received a 50% simplification in the fine and must pay €18 million. Chloé was fined EUR 19.7 million, equivalent to a 15% reduction. The Court held that Gucci and Loewe provided the Commission with evidence of crucial added value at an early stage. All 3 companies explicitly acknowledged the facts and infringements of EU competition law.
