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EU fined Gucci, Chloé and Loewe €157M for fixing resale prices across Europe

The three luxury houses spent years dictating what retailers could charge — the Commission called it resale price maintenance and fined them €157M.

Gucci · Chloé · Loewe · 2025-10-14

What happened

On 14 October 2025, the European Commission fined three luxury fashion houses — Gucci, Chloé and Loewe — a combined €157 million for resale price maintenance (RPM), a violation of Article 101 of the Treaty on the Functioning of the European Union. The Commission found that each brand had restricted independent third-party retailers from setting their own prices for almost their entire product range: apparel, leather goods, footwear, and accessories.

The restrictions took several forms. The brands imposed recommended retail prices that retailers were not permitted to deviate from, set maximum discount rates, dictated specific periods for sales, and in some cases temporarily barred any discounting at all. Gucci additionally restricted online sales of one product line by asking retailers to stop selling it via the internet. All three monitored retailers' prices and followed up with those who deviated, enforcing compliance across the European Economic Area.

The practices ran for years — Gucci from April 2015 to April 2023, Loewe from December 2015 to April 2023, and Chloé from December 2019 to April 2023. All three ended in April 2023, when the Commission carried out unannounced inspections. Gucci received the largest fine at €119.7 million (reduced by 50% for cooperation), followed by Chloé at €19.7 million (15% reduction) and Loewe at €18 million (50% reduction). The Commission opened formal proceedings in July 2024 and issued its decision on 14 October 2025.

The fines were the Commission's first RPM decision in seven years, signalling renewed scrutiny of the luxury sector's pricing practices. The Commission rejected any justification based on brand image protection or luxury positioning, stating that the behaviour increased prices and reduced choice for consumers. All three brands acknowledged the facts and cooperated under the antitrust settlement procedure.

Why it happened

  • The brands treated retail price control as a legitimate brand-protection measure rather than a competition law violation, conflating luxury image management with antitrust compliance
  • The practices were embedded in multi-year commercial relationships — the same restrictions were imposed year after year without legal review, even as the Commission's stance was settled law
  • Each brand acted independently but pursued the same strategy, which meant the practices were neither a one-off nor a rogue employee — they were systemic within each house's commercial operations
  • The fashion industry's reliance on selective distribution and brand-image arguments created a false sense of immunity — the Commission's 2025 decision rejected luxury positioning as a defence for RPM
What it cost€157M in EU fines (Gucci €119.7M, Chloé €19.7M, Loewe €18M)costly

The lesson

Controlling what retailers charge for luxury goods is resale price maintenance, not brand protection — the European Commission has been clear on this.

Aftermath

All three brands cooperated and acknowledged the infringements. Gucci and Loewe received 50% reductions for providing evidence of significant added value; Gucci revealed an infringement the Commission had not yet identified. The decision marked the EC's first RPM penalty in seven years and was seen as a signal that the luxury sector's pricing practices would face continued scrutiny. The case also highlighted the tension between selective distribution systems — which are legal under EU law — and RPM, which is a restriction by object and requires no effects-based analysis.

Sources

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