An investigation launched in 2023 revealed that Gucci, Chloé and Loewe imposed their own pricing policies on retailers, thereby increasing product prices and reducing consumer choice. Gucci was hit the hardest, with a fine of €119 million.
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The European Commission on Tuesday fined Gucci, Chloé and Loewe €157 million for preventing their retailers from setting their own prices for products designed and sold by them, reducing competition and thus increasing tariffs and offering consumers less choice — actions in breach of EU antitrust laws.
“In Europe, all consumers, whatever they buy, and wherever they buy it, online or offline, deserve the benefits of genuine price competition,” European Commissioner for Competition Teresa Ribera said.
“This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practices in Europe, and that fair competition and consumer protection apply to everyone, equally.”
More specifically, the Commission accused these brands of imposing on their retailers retail prices both online and offline, maximum discount rates — sometimes even preventing them from offering any discounts — and specific sales periods.
These pricing policies applied to the entire range of products sold by Gucci, Chloé and Loewe, including apparel, leather goods, shoes and fashion accessories.
The Commission also found that the three fashion brands not only controlled their retailers’ prices, but also closely monitored those which deviated from their pricing instructions.
Gucci hit the hardest
According to the EU antitrust watchdog, depriving retailers of their ability to set prices freely reduces competition between them, which violates the EU’s sacred principle of free and undistorted competition in the internal market, the objective being to give European consumers choice. It also increases prices.
The Commission’s investigation, which began in 2023 with inspections at companies' premises, also found that Gucci, Chloé and Loewe aimed to protect their own sales from competition by retailers themselves. Gucci alone even went as far as to forbid its retailers from selling a specific line of products online.
The Commission decided to crack down on the three fashion brands together, despite their independence, because the illegal practices occurred over roughly the same period — between 2015 and 2023 — and many of the retailers involved sold products from all three brands.
Gucci, Chloé and Loewe stopped their pricing policies towards their retailers when the Commission launched its investigation, it said.
In detail, Gucci was doled out the most significant fine of €119 million, followed by Chloe (€19 million) and Loewe (€18 million).
