- within Antitrust/Competition Law, Environment and Coronavirus (COVID-19) topic(s)
- in United States
The European Commission (EC) has fined three well-known fashion brands (namely Gucci, Chloé and Loewe) more than €157 million for violating European Union competition rules.
According to the press release published by the EC1, the three companies fixed the resale prices of their products sold by retailers in both physical and online shops, depriving them of the freedom to set the retail price for their products, including apparel, leather goods, shoes and fashion accessories. Ultimately, the fined companies' aim was to have their retailers apply the same prices and sales conditions as they applied in their own direct sales channels.
The infringing conduct
The EC found that the three fashion companies had interfered with their independent retailers' commercial strategies by requiring them not to deviate from: (i) recommended retail prices; (ii) maximum discount rates; and (iii) specific periods for sales. The EC noted that the companies in certain cases also prohibited retailers from offering discounts. In addition, Gucci imposed restrictions in its retailers' online sales by requiring them to stop selling its products over online channels. According to the EC, the fined companies monitored the prices charged by retailers for their products and took action if they deviated from their instructions. The EC reportedly found that, in general, retailers adhered to the companies' pricing policies from the outset or after being asked to do so.
The EC's interest in price fixing between manufacturers and retailers
This decision shows the importance placed by the EC in monitoring resale price fixing. It reflects its continued interest in investigating and penalising resale price maintenance practices imposed by manufacturers on retailers. The EC has previously sanctioned a number of electronics manufacturers for imposing on retailers online resale prices for their products2.
Competition Commissioner Teresa Ribera stressed that the decision sent a strong signal to the fashion industry and other sectors that the EC will not tolerate practices such as resale price maintenance in Europe, where "all consumers, whatever they buy, and wherever they buy it, online or offline, deserve the benefits of genuine price competition". It is therefore essential that companies review and adjust their commercial policies to ensure that they do not interfere with the pricing strategies of their retailers.
Footnotes
1. See the press release published by the European Commission on 14 October 2025, available here.
2. See the press release published by the European Commission on 24 July 2018, available here.
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