Brussels imposes 157 million fine on Gucci, Chloé and Loewe for antitrust price violations
A multi-million fine imposed by the European Commission on three international luxury companies for violating European competition rules. Brussels has fined Gucci, Chloé and Loewe (which belong to the three largest luxury groups in the world, respectively: Kering, Richemont and Lvmh) for setting resale prices for their products with third parties (e.g. multi-brand shops and online platforms, also multi-brand) in violation of European rules that instead provide greater freedom for retailers, to the benefit of end customers.
Unfair Practices
In fact, the three companies allegedly (separately) engaged in a series of anti-competitive behaviours: monitoring their retailers; imposing restrictions such as an obligation not to deviate from recommended retail prices; limiting the applicable (or even prohibited) discount rates; and imposing specific sales periods. Practices that interfered with their retailers' business strategies and, consequently, harmed the end consumer.
The Commission had opened the investigation on its own initiative by carrying out unannounced inspections at the premises of Gucci (Italy), Chloé (France) and Loewe (Spain) in April 2023. The formal proceedings, however, had been opened in July 2024.
"In Europe, all consumers, whatever they buy and wherever they buy it, online or offline, deserve the benefits of true price competition. This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe and that fair competition and consumer protection apply to all, equally," said EU Competition Commissioner Teresa Ribera.
Million-dollar penalties (albeit reduced)
The three companies cooperated with the Commission and, as a result, received reduced fines which, however, totalled more than EUR 157 million. The highest fine was imposed on Gucci, a company of the Kering group, which was fined more than EUR 119 million (a reduction of 5 per cent on the initial sum); Chloé, on the other hand, was asked to pay EUR 19.7 million in reparations (against a reduction of 15 per cent) and, finally, Loewe will have to pay just over EUR 18 million, having had its fine halved.
