EU fines fashion brands Gucci, Chloe, Loewe over $182M for 'anticompetitive practices'

By Mucahithan Avcioglu

ISTANBUL (AA) - The European Commission said Tuesday that it fined luxury fashion brands Gucci, Chloe and Loewe over €157 million ($182 million) for violating competition rules by setting prices in agreement.

The European said its investigation revealed that the three companies "restricted the ability of the independent third-party retailers they work with to set their own online and offline retail prices."

It said the negotiated price adjustments increased prices and reduced consumer choice, and that these were anti-competitive behaviors.

Noting that the fashion companies engaged in a practice called fixing resale prices, the Commission said these practices interfered with retailers' commercial strategies by imposing various restrictions.

"Gucci, Chloe and Loewe strived to have their retailers apply the same prices and sales conditions they applied in their own direct sales channels," it said.

Gucci was fined €119.67 million, Chloe €19.69 million, and Loewe €18 million.