EU Antitrust Enforcer Fines Gucci, Chloe, Loewe More Than $180 Million After Pricing Probe

By Edith Hancock

The European Union's competition regulator fined Kering-owned Gucci, LVMH's Loewe and Richemont's Chloe fashion labels more than 157 million euros ($181.6 million), saying that they engaged in unfair pricing strategies that reduced freedom for distributors.

The European Commission said Tuesday that the brands prevented independent third-party retailers they work with from setting their own prices for their designer products like clothes, leather goods, shoes and accessories.

"Gucci, Chloé and Loewe strived to have their retailers apply the same prices and sales conditions they applied in their own direct sales channels," the EU executive said. It said the groups interfered with their retailers' commercial strategies by imposing restrictions including requiring them to not deviate from their recommended retail prices, maximum discounts rates and sales periods, and also at least temporarily stopped retailers from offering discounts.

Gucci received the highest fine at 119.67 million euros, followed by 19.69 million euros for Chloe and 18.01 million euros for Loewe.

All three companies stopped their pricing tactics after commission officials started searching their premises in 2023, and had their fines reduced for cooperating with the EU probe.

"This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practices in Europe, and that fair competition and consumer protection apply to everyone, equally," Teresa Ribera, the bloc's competition commissioner, said.

Write to Edith Hancock at edith.hancock@wsj.com