In a landmark decision impacting the high-end fashion sector, the European Commission has levied hefty fines against prominent luxury brands Gucci, Chloé, and Loewe. These fashion giants are facing penalties exceeding 157 million euros (approximately $183 million) for engaging in anti-competitive behavior. The accusation centers on their role in restricting the freedom of independent retailers to set prices for their luxury goods.
The Commission vehemently stated that these companies’ actions in fixing resale prices constituted a clear violation of the bloc’s competition regulations. Such practices, it emphasized, directly harmed consumers and are entirely unacceptable within the European market.
Commission Vice President Teresa Ribera issued a stern warning in a statement on Tuesday (October 14, 2025), asserting that “The decision sends a strong signal to the fashion industry and beyond that we will not tolerate this kind of practice in Europe, and that fair competition and consumer protection apply to everyone, equally.”
The investigation unveiled that the three brands actively curtailed the autonomy of independent retailers. This prevented them from determining their own prices for a range of luxury items, including high-end apparel, leather goods, footwear, and accessories, whether sold online or in traditional stores.
These brands imposed strict mandates on retailers, compelling them to adhere to specific recommended retail prices. They also dictated maximum permissible discount rates and precise periods for sales, effectively mirroring the pricing strategies employed across the brands’ own direct sales channels.
The Commission concluded that these concerted practices “deprived the retailers of their pricing independence and significantly reduced competition between them,” thereby undermining market fairness and consumer choice.
As a result of their cooperation during the inquiry, both Gucci and Loewe received a 50% reduction in their fines, with Gucci notably disclosing additional breaches. Gucci’s final penalty now amounts to almost 120 million euros, while Loewe’s stands at 18 million euros. Chloé also benefited from a 15% reduction, bringing its fine to approximately 20 million euros.