Brussels, Oct. 14 (LaPresse) – The European Commission has fined fashion companies Gucci, Chloé, and Loewe for setting resale prices in violation of EU competition rules. The Commission’s investigation found that the three companies restricted independent third-party retailers they collaborate with from setting their own retail prices, both online and offline, for products designed and sold under the Gucci, Chloé, and Loewe brands. Such anti-competitive behavior raises prices and reduces consumer choice. The fines, reduced for all three companies due to their cooperation with the Commission, total over 157 million euros. The amount imposed on each company is as follows: for Gucci (with a 50% reduction) 119,674,000 euros, for Chloé (with a 15% reduction) 19,690,000 euros, and for Loewe (with a 50% reduction) 18,009,000 euros. The investigation revealed that these three fashion houses engaged in a practice known as Resale Price Maintenance (RPM). They limited their independent online and physical retailers’ ability to set their own retail prices for almost their entire range of branded products, including clothing, leather goods, footwear, and accessories. Violations affected the entire European Economic Area. In particular, the companies interfered with the commercial strategies of their retailers by imposing restrictions, such as requirements not to deviate from recommended retail prices, maximum discounts, and specific sales periods. At times, and at least temporarily, they also banned retailers from offering discounts. Gucci, Chloé, and Loewe sought to ensure their retailers applied the same prices and sales conditions as their own direct sales channels.
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