Brussels – The European Commission has imposed a joint fine of €157 million on luxury fashion brands Gucci, Chloé, and Loewe for restricting retailers’ freedom to set prices for their products, a practice deemed in violation of EU competition rules. The three high-end brands enforced pricing policies for years that artificially increased the cost of their goods and limited consumer choice across Europe.
According to the Commission, the investigation—launched in April 2023 following unannounced inspections at the companies’ premises in Italy, France, and Spain—revealed that the three fashion houses implemented a systematic “resale price maintenance” policy, forbidding independent distributors from offering discounts or setting prices different from those recommended by the brands themselves.
A coordinate scheme affecting the luxury market
Between 2015 and 2023, Gucci, Chloé, and Loewe maintained commercial policies that directly interfered with retailers’ pricing strategies, both in physical stores and online platforms. Retailers were forced to adhere to recommended retail prices, limit discounts, and follow brand-imposed sales schedules. In some cases, discounts were outright prohibited, with compliance actively monitored and distributors pressured to follow instructions.
The result was a market artificially homogenized, where prices for handbags, footwear, clothing, and accessories barely varied between stores. Such behavior, according to Brussels, “raises prices and reduces consumer choice,” violating Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement.
EU Competition Commissioner Teresa Ribera emphasized the gravity of the infringement in a statement:
“In Europe, all consumers, whatever they buy and wherever they buy it—online or in stores—deserve to benefit from genuine price competition. This decision sends a clear signal to the fashion industry: we will not tolerate such practices in the single market.”
Gucci hit hardest
The largest fine fell on Gucci, which must pay €119.6 million, followed by Chloé with €19.7 million and Loewe with €18 million. The fines were reduced for all three companies due to their cooperation with the investigation, under the EU competition cooperation procedure. Gucci and Loewe received a 50% reduction, while Chloé received a 15% discount.
Gucci’s cooperation proved particularly significant, as the Italian brand provided the Commission with information about an additional infringement not previously detected. Meanwhile, Loewe, a Spanish subsidiary of LVMH, provided evidence that allowed the Commission to expand the temporal scope of the infringement. All three companies acknowledged the facts and their responsibility, enabling Brussels to close the case via a simplified procedure.
Additional restrictions
Beyond price limitations, the investigation found that Gucci imposed restrictions on online sales for a specific product line, instructing retailers to remove those items from e-commerce platforms. Retailers complied, further reducing consumer choice and violating European digital market principles.
To ensure adherence to their pricing policies, the brands implemented active monitoring systems, supervising retailers’ posted prices and intervening in case of deviations. In practice, this meant retailers lost complete independence, following brand-dictated prices either from the outset or after receiving warnings.
The infringement period extended over several years:
- Gucci: April 2015 – April 2023
- Chloé: December 2019 – April 2023
- Loewe: December 2015 – April 2023
The three companies ended these practices in April 2023, coinciding with the Commission’s inspections. Although they acted independently—without coordinating with each other—Brussels decided to resolve the three cases jointly because the violations occurred during the same period and involved retailers selling products from all three brands.
Consumer impact
For the Commission, the conduct violated a fundamental principle of the single market: free and fair competition. By depriving retailers of pricing freedom, Gucci, Chloé, and Loewe protected their own sales from competition, artificially maintaining high prices. In the luxury sector, where brand image is paramount, such practices aim to prevent discounts from “cheapening” the product, but in practice, they constitute an illegal restriction of competition.
“Luxury brands often argue that excessive discounts can damage their prestige,” a Commission source noted. “However, EU competition law makes no exceptions: brand image cannot be used as an excuse to manipulate the market.”
The Brussels ruling also allows consumers and affected businesses to claim damages in national courts. Under Regulation (EC) No. 1/2003 and the EU Antitrust Damages Directive, a final Commission decision constitutes binding proof that the conduct occurred and was illegal.
This means that anyone who paid inflated prices for Gucci, Chloé, or Loewe products before 2023 could file claims to recover part of the overcharge. “If you think you overpaid for your Loewe bag or Chloé shoes, you may consider a compensation claim,” said legal sources in Brussels.
A warning to the luxury industry
The case, impacting the high-end fashion market segment, is also a warning to the wider industry. EU authorities reiterated that antitrust rules apply equally to all companies, regardless of size or prestige. The Commission stressed that it will continue monitoring pricing practices in e-commerce and the luxury sector, where brand control strategies can easily lead to illegal restrictions of competition.
The fines will be deposited into the EU general budget, proportionally reducing member states’ contributions. Ultimately, the Gucci–Chloé–Loewe case becomes a key precedent in protecting competition in the luxury market and a reminder that elegance cannot be built on unlawful practices.
