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Trunal Sahuji
इस खबर को सुनने के लिये प्ले बटन को दबाएं।
The European Commission has imposed fines totalling €157 million on three luxury fashion brands: Gucci (€119.7 m), Chloé (€19.7 m) and Loewe (€18 m).
The reason: these brands allegedly restricted independent retailers’ ability to set their own prices, thus breaching EU competition law.
What exactly did they do wrong?
According to the Commission, the brands engaged in the following practices:
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They prevented retailers from deviating from recommended resale prices — both online and in physical stores.
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They imposed rules on maximum discount rates and controlled the timing of sales periods, thereby interfering with retailers’ commercial strategies.
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These practices deprived retailers of pricing independence and reduced competition — which ultimately may have increased prices for consumers.
Timeline & cooperation matters
The investigation traces back to surprise raids by the European Commission in April 2023.
Formal proceedings followed and the companies’ cooperation impacted the size of their fines: for instance, Gucci’s fine was reduced because of cooperation.
Brand-wise breakdown
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Gucci: €119.7 million (largest share).
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Chloé: €19.7 million.
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Loewe: €18 million.
Implications for luxury fashion
This decision sends a strong signal that even high-end brands are subject to competition rules. The fashion industry, particularly the luxury segment, may face increased regulatory risk if they adopt restrictive distribution or pricing practices.
Furthermore, retailers carrying these brands may see changes in how they manage pricing and discounts. For consumers, the ruling could bring more competitive pricing and greater transparency.
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