Commission fines fashion brands Gucci, Chloé and Loewe over €157 million for anti-competitive pricing practices

The European Commission has fined fashion companies Gucci, Chloé and Loewe for fixing resale prices in breach of EU competition rules. The Commission’s investigation revealed that the three companies restricted the ability of the independent third party retailers they worked with to set their own online and offline retail prices for products designed and sold by Gucci, Chloé and Loewe under their respective brands. This type of anti-competitive behaviour drives up prices and reduces consumer choice.

The fines, which were reduced in all three cases due to the companies’ cooperation with the Commission, amounted to a total of more than €157 million.

On non-compliance

Gucci, Chloé and Loewe are fashion companies based in Italy, France and Spain respectively. They are all active in the design, production and distribution of high-end fashion products, such as clothing, leather goods and various accessories.

The Commission’s investigation revealed that these three fashion companies were engaged in a practice called “resale price maintenance”. This limited the ability of their independent retailers or resellers, both online and in physical shops, 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, such as clothing, leather goods, shoes and fashion accessories. The infringements covered the entire territory of the European Economic Area (“EEA”).

In particular, the three fashion companies interfered with the commercial strategies of their retailers by imposing restrictions on them such as obliging them not to deviate from: (i) recommended retail prices; (ii) maximum discount rates; and (iii) specific sale periods. In some cases, and at least temporarily, they also prohibited retailers from offering discounts. Gucci, Chloé and Loewe endeavoured to ensure that their retailers applied the same prices and sales conditions as those applied by them in their own direct sales channels.

To ensure compliance with their pricing policies, the three fashion companies monitored retailers’ prices and intervened with retailers who deviated from their instructions. In general, retailers adhered to the companies’ pricing policies, either from the outset or after being asked to do so.

These anti-competitive practices by Gucci, Chloé and Loewe deprived retailers of their pricing independence and reduced competition between them. At the same time, Gucci, Chloé and Loewe sought to protect their own sales from competition from their retailers.

In addition, Gucci imposed online sales restrictions for a specific product line by asking its retailers to stop selling the product online. Gucci’s retailers complied with these instructions.

The table below shows the duration of each company’s infringement:

Company	Start	Final
Gucci	April 2015	April 2023
Chloé	December 2019	April 2023
Loewe	December 2015	April 2023

The three fashion companies ended these practices in April 2023, when the Commission carried out unannounced inspections at their premises.

Today’s decisions indicate that the anti-competitive practices in each of the three cases constitute a single and continuous infringement of Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement, which prohibit agreements and other restrictive business practices that may affect trade and prevent or restrict competition within the Single Market.

The three fashion companies acted independently of each other. However, the duration of the three cases overlap and many of the retailers concerned sell products designed by the three companies. All three decisions concern the high-end segment of the fashion industry and send a clear signal to the entire fashion industry against resale price fixing practices in online sales and in physical shops. This type of anti-competitive behaviour drives up prices and reduces consumer choice.

Fines

Fines were set in accordance with the Commission’s 2006 Guidelines on Fines.

In setting the amount of the fines, the Commission took into account various aspects, including the gravity and duration of the infringements, their geographic scope and the value of the direct and indirect sales of the relevant products generated by each of the three fashion companies in the EEA for the duration of the infringement.

In addition, the Commission took into account the fact that the three fashion companies cooperated with the Commission in the framework of the antitrust cooperation procedure. The individual reductions of the fine amounts reflect the timing and value of the cooperation in each individual case.

In particular, Gucci and Loewe cooperated with the Commission by providing evidence with significant added value at an early stage of the investigation. Gucci’s cooperation included the disclosure of an infringement of the Union competition rules not yet known to the Commission, while Loewe’s cooperation enabled the Commission to extend the temporal scope of the infringement.

All three fashion companies cooperated by expressly acknowledging the facts and their infringements of EU antitrust rules, which enabled the Commission to close the cases under the antitrust cooperation procedure.

The fine imposed on each company is as follows:

Company	Reduction for cooperation	Fine (after reduction)
Gucci	50 %.	eUR 119 674 000
Chloé	15 %.	19 690 000 euros
Loewe	50 %.	18 009 000 euros

Background

The Commission opened these investigations on its own initiative and carried out unannounced inspections at the premises of Gucci (Italy), Chloé (France) and Loewe (Spain) in April 2023. The Commission opened formal proceedings in July 2024.

Article 101 of the TFEU and Article 53 of the EEA Agreement prohibit agreements and other restrictive business practices which may affect trade and prevent or restrict competition within the single market. The application of Article 1 TFEU is defined in Regulation (EC) No 1/2003.

The antitrust cooperation procedure is modelled on the consolidated cartel settlement procedure and can be used in other situations where undertakings are willing to acknowledge their liability for an infringement of EU competition rules, including the facts and legal qualification. The cooperation framework allows the Commission to apply a simpler and quicker procedure and allows cooperating companies to obtain a reduction of fines. The Commission assesses on a case-by-case basis whether a case lends itself to cooperation, taking into account the likelihood of reaching a common understanding with the company within a reasonable time. There is neither a right nor an obligation for companies to follow the cooperation route.

Fines imposed on companies that breach EU antitrust rules are paid into the general EU budget. This revenue is not earmarked for individual expenditure, but Member States’ contributions to the EU budget for the following year are reduced accordingly. Fines therefore contribute to financing the EU and reduce the burden on taxpayers.

More information on this case will be available under case numbers AT.40840 (Gucci), AT.40880 (Chloé) and AT.40881 (Loewe) in the public case register on the Commission’s competition website, once confidentiality issues have been dealt with.

Anonymous reporting tool

The Commission has developed a tool to make it easier for individuals or companies to report anti-competitive behaviour, while maintaining their anonymity. The tool preserves the anonymity of whistleblowers through a system of encrypted messages specifically designed to allow two-way communication. The tool can be accessed via this link.

Damages actions

Any person or undertaking affected by the anti-competitive behaviour described in this case may bring an action before the courts of the Member States for damages. The case law of the Court of Justice of the European Union and Regulation (EC) No 1/2003 confirm that, in cases before national courts, a Commission decision which has become final constitutes binding proof that the behaviour has taken place and is unlawful. The fact that the Commission has imposed a fine on the undertaking concerned does not preclude the possibility that compensation may also be awarded, without being reduced as a result of the imposition of the Commission’s fine.

The Damages Directive makes it easier for victims of anti-competitive practices to obtain damages.

Further information: European Commission