The EU Commission has fined luxury brands Gucci, Chloé, and Loewe over 157 million euros for violating competition laws by restricting their retailers' pricing and discounting practices over several years.

These brands required their independent retailers to follow fixed prices, minimal discounts, and uniform sales conditions, which limited consumer choice and stifled price competition.

The investigation, initiated in 2023, involved unannounced inspections at the brands' headquarters and revealed that these illegal practices spanned from 2015 to 2023, affecting both online and physical stores.

European Commissioner for Competition Teresa Ribera emphasized that the decision highlights the EU's commitment to fair competition and consumer protection across the region.

The European Commission formally started proceedings in July 2024, after conducting inspections in April 2023, which uncovered these resale price restrictions.

This enforcement action underscores the EU's broader efforts to ensure fair competition in the luxury fashion market and sends a strong message to the industry about the importance of fair pricing practices.

The EU Commissioner stressed that penalties serve as a deterrent, signaling increased scrutiny of high-end brands' business practices, similar to recent investigations into supply chain abuses.

Kering, owner of Gucci, confirmed that the case was resolved with the EU, with the financial impact included in their 2025 first-half results, while Loewe and Chloé committed to legal compliance.

Gucci acknowledged the investigation's resolution through cooperation, with the financial risk fully provisioned in their 2025 half-year financial statements, amid ongoing financial struggles.

The violations by Gucci, Loewe, and Chloé lasted from 2015 to 2023, only ending after EU inspections in April 2023, and involved controlling prices across various product categories.

Loewe and Chloé also agreed to comply with anti-competition laws, reaffirming their commitment to legal adherence following the investigation.

Other luxury brands like Armani, Dior, Loro Piana, and Tod's are also under scrutiny or facing legal actions related to supply chain and labor issues, indicating broader regulatory focus on the luxury sector.