The European Union has fined luxury fashion brands Gucci, Chloé and Loewe a total of €157 million for illegally controlling independent retailers and preventing them from setting their own prices.
The European Commission discovered the violations during a surprise inspection of the companies in April 2023, subsequently opening a formal investigation in July 2024.
The companies were found to have interfered with independent retailers in ways that prevented them from setting their own prices for goods both online and offline. Authorities determined this interference led to higher prices and reduced consumer choice. In some cases, the brands actively prevented retailers from offering discounts to customers.
Italian brand Gucci received the largest fine at €119.7 million, French brand Chloé was fined €19.7 million, and Spanish brand Loewe €18 million.
The three companies received reduced penalties from the Commission after admitting to violating competition law. Such cooperation typically results in lower fines under EU antitrust rules.
The case highlights the European Commission’s ongoing efforts to combat anti-competitive practices in retail markets, particularly restrictions on online pricing that limit consumer benefits. EU competition law prohibits manufacturers from imposing pricing controls that prevent retailers from offering competitive prices to consumers.
The fines serve as a warning to other luxury brands and manufacturers that vertical price-fixing agreements and interference with retailer pricing autonomy will face significant financial penalties. The Commission has increasingly scrutinized the luxury goods sector for practices that restrict online competition and maintain artificially high prices.