The European Union has imposed hefty fines totalling more than €157 million (£135 million) on three luxury fashion houses—Gucci, Chloe and Loewe—for engaging in illegal price-fixing practices that restricted retailers’ pricing freedom.
The penalties, announced on Tuesday by the European Commission, follow surprise inspections conducted at the companies’ premises in April 2023 and a formal antitrust investigation launched in July 2024.
According to the Commission, the three fashion brands violated EU competition rules by preventing independent retailers from setting their own prices for products sold both online and in physical stores.
Teresa Ribera, the EU’s antitrust commissioner, condemned the practice, stating that such behaviour ultimately harms consumers.
“This decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe,” Ribera said in a statement.
The Commission’s investigation revealed that the luxury brands interfered with retailers’ commercial strategies by imposing strict controls on pricing. The companies dictated maximum discount rates, specified when sales could be held, and in some instances, banned retailers from offering any discounts whatsoever.
“Such anticompetitive behaviour increases prices and reduces choice for consumers,” the Commission said, adding that the three companies “acted independently of each other” in implementing these restrictive practices.
Italian fashion house Gucci, owned by French luxury conglomerate Kering, received the steepest penalty of €119.7 million for violations spanning from April 2015 to April 2023. As the largest of the three brands, Gucci’s fine reflected the scale and duration of its infringements.
French fashion house Chloe, owned by Swiss luxury group Richemont, was fined €19.7 million for price-fixing violations between December 2019 and April 2023.
Spanish brand Loewe, part of the LVMH luxury empire, received an €18 million fine for breaches occurring between December 2015 and April 2023.
Brussels reduced the penalties for all three companies after they acknowledged their violations and cooperated with the investigation.
Kering, Gucci’s parent company, confirmed it had anticipated the fine and made provisions in its financial statements for the first half of 2025.
“Kering acknowledges the EU’s decision related to past commercial practices at Gucci. The exposure is entirely covered,” the company said.
Loewe emphasised its commitment to following competition law, stating: “Loewe reiterates its firm commitment to acting in strict compliance with competition law.”
Chloe said it took the matter seriously and had acted swiftly to address the violations.
“We take this matter extremely seriously and acted with the utmost diligence to address it,” the brand said. “Since the 2023 investigation, we have reinforced our compliance framework with enhanced measures to ensure strict adherence to competition law.”
