Why EU slapped €157M fine on Gucci, other luxury brands
What's the story
The European Union (EU) has slapped a hefty fine of €157 million on luxury fashion brands Gucci, Chloe, and Loewe. The penalty comes after an investigation by the EU's antitrust watchdog found that these companies had illegally imposed price restrictions on their products. The brands were found to have restricted retailers from independently setting their own prices for online and in-store sales.
Penalty distribution
Penalties reduced for cooperation and admission of wrongdoing
Gucci, the largest of the three brands owned by Kering, was fined €119.7 million for violations between April 2015 and April 2023. Chloe was fined €19.7 million for violations between December 2019 and April 2023, while Loewe was slapped with an €18 million fine for infractions between December 2015 and April 2023. The penalties were reduced after all three companies admitted their wrongdoing and cooperated with the commission's investigation.
Official response
Brands interfered with retailers' commercial strategies: Margrethe Vestager
Teresa Ribera, the European Commissioner for Competition, condemned the actions of Gucci, Chloe, and Loewe. She said these companies "interfered with their retailers' commercial strategies" by imposing restrictions such as not deviating from maximum discount rates and specific periods for sales. In some cases, they even temporarily banned retailers from offering any discounts. The commission also noted that the firms acted independently of each other in this regard.
Ongoing campaign
Fines part of EU's crackdown on fashion cartels
The fines against Gucci, Chloe, and Loewe are part of the EU's ongoing campaign against fashion cartels and restrictive business agreements. These penalties stem from a major raid conducted by EU regulators on fashion companies' headquarters in April 2023. Kering has acknowledged the decision regarding past commercial practices at Gucci and has already accounted for the fine in its H1 2025 financial statements.
Information
Luxury sector facing regulatory challenges on multiple fronts
The luxury sector is facing increasing regulatory challenges. Italian authorities have been cracking down on major labels like Armani, Dior, and others over worker exploitation in their supply chains. The industry is also dealing with new issues such as data breaches involving protected client information.