European Commission slaps three major fashion brands with €157 million fine

The European Commission on Tuesday fined Gucci, Chloé and Loewe €157 million for preventing their retailers from setting their own prices for products designed and sold by them, reducing competition and thus increasing tariffs and offering consumers less choice — actions in breach of EU antitrust laws.

“In Europe, all consumers, whatever they buy, and wherever they buy it, online or offline, deserve the benefits of genuine price competition,” European Commissioner for Competition Teresa Ribera said.

“This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practices in Europe, and that fair competition and consumer protection apply to everyone, equally.”

What it means is that the brands have prevented retailers from undercutting the recommended price, running deeper discounts or timing their own sales. This limits the flexibility and price competitiveness between vendors, whether online or in physical stores, and the effective price floor stays high.

The Commission found all three brands ran schemes that stripped independent retailers of pricing freedom for almost their entire ranges — apparel, leather goods, footwear and accessories. Retailers were told not to deviate from “recommended” prices, cap discounts and stick to brand-dictated sales windows.

In some cases, discounts were banned outright, while the brands monitored compliance and leaned on resellers who broke ranks.

Luxury and high-end brands place a lot of emphasis on the prestige element of their products, with Chloé boots or Loewe bags representing a status symbol for buyers. If the retailers drop the prices on their own, brands can argue that their image is being damaged.

Gucci hit the hardest

According to the EU antitrust watchdog, depriving retailers of their ability to set prices freely reduces competition between them, which violates the EU’s sacred principle of free and undistorted competition in the internal market, the objective being to give European consumers choice. It also increases prices.

The Commission’s investigation, which began in 2023 with inspections at companies' premises, also found that Gucci, Chloé and Loewe aimed to protect their own sales from competition by retailers themselves. Gucci alone even went as far as to forbid its retailers from selling a specific line of products online.

The Commission decided to crack down on the three fashion brands together, despite their independence, because the illegal practices occurred over roughly the same period — between 2015 and 2023 — and many of the retailers involved sold products from all three brands.

Gucci, Chloé and Loewe stopped their pricing policies towards their retailers when the Commission launched its investigation, it said.

Fines were calculated under the EU’s 2006 guidelines, factoring in gravity, duration, geographic scope and the value of sales concerned. All three companies received reductions for cooperating under the Commission’s antitrust procedures, with Loewe and Gucci receiving a 50% lower fine and Chloé getting their fine reduced by 15%.

In detail, Gucci was doled out the most significant fine of €119 million, followed by Chloe (€19 million) and Loewe (€18 million).

Crucially, the rulings also arm consumers and rivals — any person or company harmed can sue for damages in national courts, with the Commission’s final decision serving as binding proof that the behaviour occurred and was unlawful.

The EU’s Antitrust Damages Directive eases disclosure and quantification, smoothing the path to compensation.

So if you think you paid too much for your Loewe Puzzle Bag at a department store before 2023, consider filing a damages suit to get some of your money back.