Fashion firms Gucci, Chloé and Loewe have been fined by the Commission for fixing resale prices in breach of EU competition rules.
The European Commission's investigation revealed that all three companies restricted the ability of independent third-party retailers they work with to set their own online and offline retail prices for products designed and sold by Gucci, Chloé and Loewe under their respective brand names.
According to the Commission, this type of anti-competitive behavior raises prices and reduces choice for consumers.
The fines, which appear reduced in all three cases due to the cooperation of the companies with the Commission, total over €157 million.
Gucci, Chloé and Loewe are fashion companies based in Italy, France and Spain respectively. All are active in the design, production and distribution of high-quality 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 limited the ability of both online and brick-and-mortar retailers, which are independent resellers, to set their own retail prices for almost the entire range of products designed and sold by Gucci, Chloé and Loewe under their respective brands, including apparel, leather goods, footwear and accessories fashion. The infringements covered the entire territory of the European Economic Area (EEA).
More specifically, the three fashion companies interfered with their retailers' commercial strategies by imposing restrictions on them, such as requiring them not to deviate from: recommended retail prices, maximum discount percentages, and specific discount periods. In some cases, and at least temporarily, they also banned retailers from offering discounts. Gucci, Chloé and Loewe tried to allow their retailers to apply the same prices and terms of sale as they applied to their own direct sales channels.
