EU Fines Gucci, Chloé, Loewe for Anti-Competitive Pricing

Milan, Oct 15 (AP) The European Commission has imposed fines totaling over 157 million euros (almost 183 million USD) on luxury fashion brands Gucci, Chloé, and Loewe due to anti-competitive pricing practices that restricted independent retailers.

The Commission condemned the companies for engaging in resale price fixing, a violation of European competition regulations that ultimately disadvantages consumers.

Teresa Ribera, a vice president at the Commission, emphasized the importance of the ruling, stating, "The decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe, and that fair competition and consumer protection apply to everyone, equally."

The European Commission highlighted how these brands limited the autonomy of independent retailers to determine their own prices for luxury products including apparel, leather goods, footwear, and accessories offered both online and in physical stores.

Retailers were coerced into adhering to the suggested retail prices, maximum discount rates, and specific sale periods, aligning them with the pricing strategies of the brands' own direct sales channels.

The Commission noted that these tactics stripped retailers of their pricing independence and weakened inter-retailer competition.

Due to cooperation during the investigation, Gucci and Loewe received reduced penalties. Gucci, which disclosed additional violations, faces fines nearing 120 million euros, while Loewe’s penalty amounts to 18 million euros. Chloé's fine saw a 15 per cent deduction, bringing it to approximately 20 million euros.(AP)

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