Gucci, Loewe, Chloé Fined by EU Antitrust Authority Over Pricing Practices

Core Viewpoint - The European Union's antitrust authority has imposed fines exceeding 157 million euros on luxury brands Gucci, Loewe, and Chloé for engaging in anticompetitive pricing practices, specifically related to resale price maintenance [1][5]. Summary by Sections Antitrust Investigation - The European Commission initiated investigations in 2023, leading to formal proceedings in 2024 regarding alleged violations of resale price maintenance (RPM) [1]. - The investigation included unannounced inspections at the brands' premises [1]. Pricing Restrictions - The luxury brands were found to have restricted their wholesale partners, primarily independent retailers, from setting their own retail prices both online and offline [2]. - The companies imposed various restrictions on retailers, including adherence to recommended retail prices, maximum discount rates, and specific sales periods [4]. Impact on Retailers - These practices deprived retailers of pricing independence and diminished competition among them [5]. - The European Commission emphasized that all consumers should benefit from genuine price competition across Europe [3]. Fines and Cooperation - Gucci, owned by Kering, received the largest fine of 119.6 million euros, while the total fines for all three brands exceeded 157 million euros [6]. - The companies cooperated with the investigation, which led to a reduction in the fines imposed [5].