Gucci, Chloe And Loewe Hit With Massive €157 Million EU Antitrust Fines

The European Union has imposed fines totalling more than €157 million (R3.3 billion) on luxury fashion houses Gucci, Chloé and Loewe for breaching competition laws.

According to the European Commission, the brands were found guilty of restricting how independent retailers could set prices for their products both online and in stores a practice that, the Commission says, pushed up prices and limited consumer choice across the EU’s luxury market.

What Triggered The Investigation

The penalties come after the EU’s executive arm conducted surprise inspections at the companies’ offices in April 2023, followed by a formal antitrust probe launched in mid-2024.

Brussels determined that between 2015 and 2023, the three fashion giants interfered with retailers’ pricing strategies by dictating discount limits, controlling when sales could take place, and even temporarily banning discounts altogether.

While the brands acted independently of one another, their actions shared a common theme limiting retailers’ freedom to compete.

The Breakdown Of The Fines

The largest share of the penalty was directed at Gucci, owned by French luxury group Kering, which was fined €119.7 million for offences committed between April 2015 and April 2023.

French brand Chloé received a €19.7 million fine for violations between December 2019 and April 2023.

Spanish fashion house Loewe, part of LVMH Group, was fined €18 million for similar conduct that occurred from December 2015 to April 2023.

Each company’s fine was reduced after cooperating with the investigation and acknowledging their wrongdoing.

Industry Response

In a statement, Kering said it “acknowledges” the EU’s decision regarding past practices at Gucci, adding that it had already made financial provisions for the penalty earlier this year. “The exposure is entirely covered,” the group confirmed.

Loewe, meanwhile, reiterated its commitment to “acting in strict compliance with competition law,” signalling a desire to move forward from the controversy.

A Warning To The Luxury Industry

This case serves as a reminder that even the world’s most prestigious fashion houses are not immune from scrutiny under EU competition law. The European Commission’s latest move underscores its ongoing efforts to ensure fairness in luxury retail where pricing power and exclusivity often go hand in hand.

By targeting these brands, the EU is sending a clear message: market prestige cannot come at the expense of fair competition or consumer choice.

{Source:EWN}

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