The Commission's investigation revealed that the three companies restricted the ability of the independent retailers they work with to set their own online and offline retail prices for products designed and sold by them under their respective brands. This type of anti-competitive behavior increases prices and reduces choice for consumers, according to a Commission statement.
The European Commission has fined three luxury fashion brands for fixing resale prices. An investigation revealed that the three brands restricted the ability of independent partner retailers to set their own online and offline retail prices for products designed and sold by them under their respective brands. They interfered in the business strategies of their retailers by imposing restrictions on them.
The fines, which were reduced in all three cases thanks to the companies' cooperation with the Commission, amounted in total to more than €157 million.
Gucci, Chloe and Loewe are fashion companies based in Italy, France and Spain respectively. They design, produce and distribute high-end fashion products, including clothing, leather goods and various accessories.
The Commission's investigation revealed that these three fashion companies engaged in a practice called resale price maintenance (RPM).
They restricted the ability of both their online and traditional retailers, which are independent resellers, to set their own retail prices for almost the entire range of products designed and sold by them under their respective brands. The infringements covered the entire territory of the European Economic Area (EEA).
In particular, the three fashion companies interfered with their retailers' business strategies by imposing restrictions on them, such as requiring them not to deviate from recommended retail prices; maximum discount rates; and specific sales periods.
In certain cases, and at least temporarily, they also prohibited retailers from offering discounts. They strove to ensure that their retailers applied the same prices and sales conditions that they applied in their own direct sales channels.
To ensure compliance with their pricing policies, all three companies monitored retailers' prices and tracked retailers who deviated. Retailers generally adhered to companies' pricing policies, either from the beginning or after they were asked to do so.
“These anti-competitive practices by Gucci, Chloe and Loewe deprived the retailers of their price independence and reduced competition between them. At the same time, Gucci, Chloe and Loewe attempted to protect their own sales from competition from their retailers,” the Commission noted.
Additionally, Gucci imposed restrictions on online sales for a specific product line by asking its retailers to stop selling the product online.
The practices ended for the three companies in April 2023, when the Commission carried out unannounced inspections at their facilities.
Fiber2Fashion News Desk (DS)
