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

An investigation launched in 2023 revealed that Gucci, Chloé and Loewe imposed their own pricing policies on retailers, thereby increasing product prices and reducing consumer choice. Gucci was hit the hardest, with a fine of €119 million.
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.