The EU Fines Gucci, Loewe, and Chloé €157 Million

The institution accuses the brands of breaking the law by setting the resale prices of their products at distributors in their favor. These actions are said to have violated European Union competition rules. Gucci, which has already been feeling the full force of market tensions for several financial years, was fined €119.7 million.

The Spanish fashion house Loewe, one of the jewels in Bernard Arnault's group, will have to pay €18 million. Richemont is also in the EU's sights, with its Chloé brand receiving a fine of €19.7 million.

“This decision sends a powerful message to the fashion industry,” said Teresa Ribera, Executive Vice President of the Commission. Indeed, these practices have harmful consequences for consumers, contributing to soaring product prices.

“The three companies interfered in the commercial strategies of their retailers by imposing restrictions, such as the obligation not to deviate from recommended retail prices [...] and specific periods for sales,” the Commission explained.

All the groups benefited from reduced fines for cooperating with the institutions and formally committing to comply with the rules for the brands concerned.

Although the Commission's decision was only announced yesterday, the investigation has been ongoing for several years. It was launched in 2023, when inspectors in Brussels began to notice that the three companies were illegally imposing their prices on distributors and retailers, both online and in stores. The ruling should put an end to these practices.

Kering announced that the fine had already been provisioned in its first-half accounts this year, so it will not have a major impact on the company's already fragile financial situation. “Kering takes note of the European Commission's decision regarding practices that are no longer in place at Gucci,” the French Group said in a press release.

Loewe responded by “reiterating its firm commitment to operating in strict compliance with competition law.”