EU fines Gucci, Chlo and Loewe €157m for luxury price-fixing scheme

The European Commission has fined luxury fashion houses Gucci, Chlo and Loewe over 157 million euros (nearly USD 183 million) for anti-competitive practices restricting independent retailers' ability to set prices for their luxury goods.

The Commission said the companies' fixing of resale prices breached the bloc's competition rules, harmed consumers and would not be accepted.

The decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe, and that fair competition and consumer protection apply to everyone, equally,' commission vice president Teresa Ribera said in a statement on Tuesday.

The commission said that the three brands restricted the ability of independent retailers to set their own prices for high-end apparel, leather goods, footwear and accessories sold both online and in physical stores.

The brands required the retailers to stick to recommended retail prices, set maximum discount rates as well as periods for sales, mirroring practices in the brands' own direct sales channels.

The practices "deprived the retailers of their pricing independence and reduced competition between them, the commission said.

Gucci and Loewe had their fines reduced by half due to cooperation, with Gucci revealing additional breaches. Gucci's fine totals nearly 120 million euros, while Loewe's was 18 million euros. Chlo's fine was reduced by 15 per cent to nearly 20 million euros.