MILAN (AP) — The European Commission has fined fashion houses Gucci, Chloé and Loewe more than 157 million euros (nearly $183 million) for anticompetitive practices that limited the ability of independent retailers to set prices for their luxury goods.
The commission said companies setting resale prices violated the bloc's competition rules, harmed consumers and would not be accepted.
“This decision sends a strong signal to the fashion industry that we will not tolerate this type of practice in Europe, and that fair competition and consumer protection apply equally to everyone,” commission vice-president Teresa Ribera said in a statement Tuesday.
The commission said the three brands had limited the ability of independent retailers to set their own prices for luxury clothing, leather goods, shoes and accessories sold both online and in brick-and-mortar stores.
Brands required retailers to adhere to recommended retail prices, maximum discount rates, and sales periods that mirrored the practices of the brands' own direct sales channels.
This practice “deprived retailers of price independence and reduced competition between them,” the commission said.
Thanks to the collaboration, Gucci and Loewe cut the fines in half, while Gucci identified additional violations. Gucci's fine is almost 120 million euros, and Loewe's is 18 million euros. Chloe's fine was reduced by 15% to almost €20 million.
