The European Union has imposed significant fines on renowned fashion brands Gucci, Chloe, and Loewe for violating antitrust laws.
Fines Imposed for Price Fixing
On October 14, 2023, the EU’s antitrust regulator announced total penalties amounting to €157 million ($182 million) against the three luxury brands.
- Gucci: €119.7 million
- Chloe: €19.7 million
- Loewe: €18 million
This ruling reflects the increasing scrutiny on luxury fashion companies regarding their pricing strategies and market practices.
Violation of Retail Independence
The European Commission reported that these companies imposed several restrictions on their retailers. These included:
- Mandatory adherence to recommended retail prices
- Maximum discount rates
- Defined sales periods
Such practices limited retailers’ pricing autonomy and stifled competition by shielding the brands’ own sales channels from competitive pressures.
Company Responses
Kering, the parent company of Gucci, stated that the EU’s investigation concluded after a cooperation process. They indicated that the penalty had been reflected in their financial statements for the first half of 2025.
Loewe, part of the LVMH group, acknowledged the fine and committed to ensuring compliance with antitrust regulations going forward. Meanwhile, Chloe, owned by Richemont, emphasized its serious approach to compliance post-investigation, which began in early 2023.
Broader Regulatory Challenges
This case is part of a larger trend of increased regulatory challenges faced by luxury brands. Issues range from antitrust violations to concerns about labor practices within supply chains.
Other notable brands like Armani, Dior, and Loro Piana have also been under investigation by Italian authorities over potential worker abuse.
As the luxury fashion sector continues to navigate these regulatory waters, companies are under pressure to revise their business practices and uphold compliance with evolving laws.
