EU Commission Fines Luxury Fashion Brands €157 Million for Price Fixing

The European Commission has taken decisive action against anticompetitive practices in the luxury fashion sector, imposing substantial fines totaling €157 million ($181.52 million) on prominent fashion houses Gucci, Chloe, and Loewe. This enforcement action represents a significant development in EU competition law enforcement and underscores the regulatory commitment to maintaining fair market practices.

Anticompetitive Pricing Practices

According to the EU Commission statement, the three fashion companies engaged in practices that violated EU competition rules by interfering with their retailers' commercial strategies. The Commission found that these luxury brands imposed restrictions that limited retailers' pricing freedom, ultimately harming consumer choice and potentially increasing prices.

Specific Violations Identified

The Commission detailed several specific restrictions imposed by the fashion houses on their retail partners. These included requirements for retailers to adhere strictly to recommended retail prices, limitations on maximum discount rates, and controls over specific periods when sales could be conducted. Such practices effectively prevented retailers from competing on price and offering consumers better deals.

Corporate Responses and Financial Impact

Kering, the parent company of Gucci, acknowledged the EU investigation and stated that the matter was resolved through a cooperation procedure. The company indicated that the financial impact of the fine had been provisioned in their 2025 first-half results, suggesting they had anticipated the regulatory action. Meanwhile, Richemont (owner of Chloe) and LVMH (owner of Loewe) had not provided immediate comments following the announcement.

Broader Implications for Luxury Sector

This enforcement action sends a clear message to the luxury fashion industry about the EU's commitment to enforcing competition rules. The Commission emphasized that anticompetitive behavior of this nature directly impacts consumers by reducing choice and potentially increasing prices. The significant fines demonstrate the serious consequences for companies that engage in practices that restrict market competition.

The EU Commission's action against Gucci, Chloe, and Loewe represents a landmark enforcement in the luxury fashion sector. With combined fines of €157 million, this case underscores the importance of compliance with competition regulations and serves as a warning to other market participants. The decision reinforces the Commission's role in protecting consumer interests and ensuring fair competition across European markets, particularly in sectors where brand power could potentially be misused to distort market dynamics.