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EU fines Gucci, Chloé and Loewe for resale price fixing
Yahoo Finance· 2025-10-15 11:17
Core Viewpoint - The European Commission has fined luxury fashion brands Gucci, Chloé, and Loewe a total of €157 million ($181.52 million) for engaging in resale price maintenance practices that violate EU competition law [1]. Group 1: Violations and Practices - The brands limited independent retailers' freedom to set their own prices for goods sold under their labels, affecting apparel, leather goods, footwear, and accessories across the European Economic Area (EEA) [2]. - Pricing conditions imposed by the companies included restrictions on deviating from recommended retail prices, setting maximum discount levels, and altering designated sales periods [2][3]. - In some instances, retailers were completely barred from offering discounts, and compliance was monitored to ensure uniform pricing across sales channels [2]. Group 2: Investigation and Fines - The violations occurred over different time frames: Gucci from April 2015 to April 2023, Chloé from December 2019 to April 2023, and Loewe from December 2015 to April 2023 [3]. - The unlawful practices ceased following unannounced inspections by the commission in April 2023, leading to the calculation of fines based on the seriousness, duration, and geographical reach of the infringements [4]. - The fines were reduced for cooperation during the investigation: Gucci and Loewe received a 50% reduction, while Chloé received a 15% reduction, resulting in fines of €119.67 million for Gucci, €19.69 million for Chloé, and €18.01 million for Loewe [4]. Group 3: Legal Framework and Impact - The actions of the companies were found to restrict retailers' pricing independence, limit competition, and reduce consumer choice, breaching Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement [5]. - The investigation began with unannounced inspections in April 2023, followed by formal proceedings opened in July 2024 [6].