EU fines three luxury brands from three countries

The European Union (EU) Commission announced that luxury fashion brands Gucci, Chloe, and Loewe, based in France, were found to have violated EU competition rules. The statement reads, “The EU Commission has fined Gucci, Chloe, and Loewe fashion brands over 157 million euros for their anti-competitive pricing practices.” The statement pointed out that the brands restricted the ability of independent third-party retailers they work with to set online and offline retail prices, and that the companies dictated minimum selling prices for their products. The statement noted that when rival companies adjust prices in agreement, it increased prices and reduced consumer choice, and that these were anti-competitive behaviors. THEY INTERVENED WITH RETAILERS In the statement, it was noted that three fashion companies had engaged in a practice called resale price maintenance, and that these had interfered with their commercial strategies by imposing various restrictions on retailers. The statement reported that Gucci was fined 119 million 674 thousand euros, Chloe 19 million 690 thousand euros, and Loewe 18 million 9 thousand euros due to violations of the rule. The EU Commission has the authority to inspect whether there is any anti-competitive situation in the sectors of companies operating in EU countries. If the EU Commission detects a violation of competition or antitrust laws in the examination in question, it puts an end to it and can impose high fines on the companies.