EU Antitrust Enforcer Fines Gucci, Chloe, Loewe Over $180 Million After Pricing Probe — Update
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 after they formally opened an investigation in 2024.
"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.
Kering said on Tuesday it acknowledges the commission's decision. "The Commission's investigation was resolved following a cooperation procedure, allowing for a swifter resolution of the case," it said, adding the risk from the probe was provisioned in the company's financial statements in the first half of 2025.
LVMH and Richemont didn't immediately reply to requests for comment.
Write to Edith Hancock at edith.hancock@wsj.com
(END) Dow Jones Newswires
October 14, 2025 06:30 ET (10:30 GMT)
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