Guess restricted its own retailers from selling online — the EC fined them €40M

Guess, the American fashion brand, operated a selective distribution network across the EU and EEA. To control its brand image and pricing, Guess imposed a series of restrictions on its authorized retailers: they needed prior authorization to sell online, they could not use Guess trademarks or brand names for online advertising, and they were prevented from selling to consumers or retailers outside their assigned territories.

These restrictions breached EU antitrust rules. The European Commission investigated and found that Guess had artificially partitioned the EU single market along national borders, preventing consumers from shopping across borders for better prices. This is precisely the kind of geo-blocking the EU's digital single market strategy was designed to eliminate.

On 5 December 2018, the Commission fined Guess €39,821,000. The case was one of the first enforcement actions under the EU's e-commerce sector inquiry and set a precedent for how luxury and fashion brands could — and could not — control their online distribution in Europe.