Gucci, Chloe, Loewe hit with €157M fine by European Commission
Big names in luxury fashion—Gucci, Chloe, and Loewe—just got hit with a €157 million fine by the European Commission for telling retailers how much to charge (and when to run sales).
The announcement came Tuesday after an investigation found these brands were blocking stores from setting their own prices or offering discounts outside official sale periods.
Gucci faced the biggest penalty
Gucci faced the biggest penalty at €119.67 million, while Chloe and Loewe were fined €19.69 million and €18.01 million.
The brands kept a tight grip on prices for clothes, bags, shoes—you name it—making it tough for retailers to compete or give shoppers better deals.
Competition commissioner Margrethe Vestager's take
The EU isn't messing around when it comes to fair competition.
Competition commissioner Margrethe Vestager put it simply: "Fair competition and consumer protection apply to everyone equally."
Even though the companies cooperated (which helped lower their fines), this serves as a clear reminder that big brands can't call all the shots at the expense of choice or fairness in Europe's luxury market.