The European Commission has delivered a stringent antitrust ruling, imposing cumulative penalties exceeding 157 million euros on the high-end fashion houses Gucci, Chloé, and Loewe. This decisive regulatory action targets anti-competitive practices that regulators determined artificially inflated the cost of goods for end consumers and curtailed market choice. The central allegation revolved around the unlawful imposition of pricing policies—a practice commonly known as resale price maintenance—on independent retailers, thereby stifling genuine market rivalry and competition.
The extensive investigation revealed that these three industry titans, while operating independently of one another, actively intervened in the commercial strategies of their retail partners. These constraints were multifaceted, including mandates for strict adherence to recommended retail prices (RRPs), the establishment of ceilings on permissible discounts, and the precise scheduling of sales periods. The Commission further detailed instances where the brands successfully implemented temporary, complete prohibitions against distributors offering any price concessions whatsoever. The overarching objective of these stringent measures was to compel partners to maintain identical prices and terms as those utilized within the brands' own direct sales channels.
The sanctions were allocated based on the severity and duration of the violations. Gucci, which is owned by Kering, received the largest penalty, amounting to 119.7 million euros, covering infractions that occurred between April 2015 and April 2023. Chloé, operating under the Richemont umbrella, was fined 19.7 million euros for the period spanning December 2019 to April 2023. Finally, Loewe, a key asset in the LVMH portfolio, incurred an 18 million euro fine for violations committed between December 2015 and April 2023.
It is crucial to note that all three corporations engaged in cooperation with the regulatory body and acknowledged their failings. This willingness to collaborate and admit fault was a significant factor that resulted in a substantial reduction of the initial penalty amounts proposed by the Commission.
In response to the ruling, Kering confirmed that the financial risks associated with this complex legal matter had already been factored into its reporting for the first half of 2025. This proactive accounting move signals the group's acknowledgment of the necessary operational adjustments required moving forward in the European market.
The verdict, publicly announced by representatives of the EC, establishes a powerful benchmark for the entire luxury sector across Europe. The Commission underscored that price competition remains an inherent right for every shopper, irrespective of where they choose to purchase the product. By putting an end to the rigid control over pricing flexibility, this decision inaugurates a new era, empowering retailers to exercise commercial acumen and allowing the true market value of luxury goods to be determined naturally through the dynamics of supply and demand.