The European Union investigation raided the pricing practices of fashion companies


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June 15, 2023

EU antitrust regulators who raided Kering Gucci and other fashion companies in April are looking at how they set prices for handbags and leather goods to distributors, three people with direct knowledge of the matter told Reuters.

Gucci – Fall-Winter 2023 – 2024 – Womenswear – Milan – © ImaxTree

Kering said at the time that Gucci was working with EU regulators to produce such products after Reuters previously reported an attack on its EU site in Milan.

The European Commission and Kering declined to comment on Monday.
The commission, which did not name the companies it raided, said at the time that they may have violated EU antitrust laws on cartels and restrictive business practices, but did not provide details.

One of the people said that the European Union’s competition control group is threatening to sell their multi-brand retail products by dropping consumer prices and not selling them.

Such practices are illegal under EU antitrust laws and violations can result in fines of up to 10% of a company’s global turnover.

US clothing company Guess was fined 40 million euros ($43 million) in 2018 for preventing retailers from setting the retail prices of its products.

© Thomson Reuters 2023 All rights reserved.


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