EU fines Gucci, Chloé, Loewe over €157m for fixing resale prices

The European Commission on Tuesday fined luxury fashion houses Gucci, Chloé, and Loewe more than €157 million ($183 million) for illegally fixing resale prices across Europe, in breach of EU antitrust rules.

The Commission found that the three brands — owned respectively by Kering, Richemont, and LVMH — restricted independent retailers from setting their own online and in-store prices for a wide range of products, including clothing, leather goods, shoes, and accessories.

“Today we have fined European fashion houses for interfering with their independent retailers’ prices in breach of EU competition rules,” said Teresa Ribera, the Commission’s Executive Vice-President for Clean, Just and Competitive Transition. “In Europe, all consumers, whatever they buy, and wherever they buy it, online or offline, deserve the benefits of genuine price competition.”

“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.”

Anticompetitive conduct

According to the Commission, the companies engaged in resale price maintenance (RPM), pressuring retailers not to deviate from recommended retail prices, maximum discount limits, and sale periods. In some cases, the brands temporarily banned discounts altogether.

The companies also monitored retailers’ prices and intervened when deviations occurred, ensuring prices remained aligned with those charged through their own stores. Gucci went further by banning online sales of a specific product line, a restriction retailers complied with.

The practices covered the entire European Economic Area (EEA) and lasted for several years:

• Gucci: April 2015 – April 2023
• Chloé: December 2019 – April 2023
• Loewe: December 2015 – April 2023

All three stopped the conduct in April 2023, when the Commission carried out unannounced inspections.

Fines and cooperation

The Commission said the fines were calculated based on the gravity, duration, and geographic scope of the infringements, as well as the companies’ sales within the EEA. All three benefited from reductions for cooperating with the investigation.