MILAN (AP) — european commission Luxury fashion brand fined gucci, chloe and loewe Paid more than 157 million euros (approximately $183 million) in damages for anti-competitive practices that restricted the ability of independent retailers to set prices for luxury goods.
The commission said companies’ fixing of resale prices violated competition rules in the region and harmed consumers.
“This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this type of practice in Europe and that fair competition and consumer protection apply equally to everyone,” Teresa Rivera, vice president of the commission, said in a statement on Tuesday.
Gucci owner Kering acknowledged in a statement that the decision was “related to past business conduct” and said in a statement that a “cooperative process” had enabled “a faster resolution of the incident.” Gucci’s fine was cut in half to nearly 120 million euros, the commission said, for its cooperation in uncovering further violations. Kering said funds would be set aside to cover the fine in the first half of 2025.
Chloé owner Richemont and Loewe owner LVMH did not respond to requests for comment. Loewe’s fine was halved to €18 million for co-operation, while Chloé’s fine was reduced by 15% to nearly €20 million.
The commission said the three brands limit the ability of independent retailers to set their own prices for luxury apparel, leather goods, footwear and accessories sold both online and in-store.
Brands required retailers to adhere to recommended retail prices and set maximum discount percentages and sales periods to reflect the brands’ own direct sales channel practices.
The practice “deprived retailers of pricing independence and reduced competition among retailers,” the commission said.
