EU Slams Gucci, Chloé, and Loewe with €157 Million Fine for Luxury Price-Fixing Scheme
Brussels, Belgium – October 14, 2025 – In a significant enforcement action that sends a strong message across the luxury fashion industry, the European Commission has imposed fines totaling over €157 million on three of the world’s premier fashion houses: Gucci, Chloé, and Loewe. The penalty, announced today, stems from anti-competitive practices that restricted independent retailers’ ability to set their own prices for high-end goods, thereby distorting fair competition and harming consumers.
The €157 Million Reckoning: Unpacking the Commission’s Decision
The European Commission’s investigation, which began with unannounced inspections in April 2023 and formal proceedings in July 2024, revealed that Gucci, Chloé, and Loewe engaged in illegal resale price maintenance (RPM) practices. These luxury brands systematically interfered with the commercial strategies of their independent retailers, both online and offline. Restrictions included dictating recommended retail prices, imposing maximum discount rates, and controlling the timing of sales periods. In some instances, the brands even prohibited retailers from offering any discounts at all, effectively mirroring the pricing strategies employed within their own direct sales channels.
According to the Commission, these practices deprived retailers of their pricing independence, reduced competition among them, and artificially kept prices high for consumers across the European Economic Area. The penalties are a clear signal that such tactics, often employed to preserve brand image and exclusivity, are unacceptable under EU competition law.
Individual Fines and Brand Responses
The total fine of €157 million is distributed among the three companies, with reductions granted for their acknowledged infringement and cooperation with the investigation. Gucci, owned by the luxury conglomerate Kering, received the largest penalty of €119.7 million. The company acknowledged the decision, which relates to past commercial practices, and noted that a cooperative procedure allowed for a swifter resolution. Kering had already set aside funds for this fine in the first half of 2025.
Chloé, part of the Richemont group, was fined €19.7 million, with a 15% reduction for its cooperation. A spokesperson for Chloé stated that the company takes the matter extremely seriously and has since reinforced its compliance training and adopted enhanced measures to ensure strict adherence to competition law.
Loewe, owned by LVMH, received a fine of €18 million, also benefiting from a 50% reduction due to its cooperation. The brand’s parent company confirmed its settlement with the European Commission and pledged to operate in strict compliance with antitrust laws.
Background and Implications for the Fashion Sector
This recent enforcement action underscores the European Commission’s ongoing scrutiny of the retail, fashion, and luxury sectors. While selective distribution systems, which these brands often employ, are permissible under EU law, they do not shield companies from liability for practices that restrict competition, such as RPM. The Commission emphasized that brand prestige cannot justify restrictions that distort competition and harm consumers.
The investigation covered infringements that occurred over several years, with practices for Gucci noted between April 2015 and April 2023, and for Chloé and Loewe between December 2019 and April 2023, and December 2015 and April 2023 respectively. The decision sends a strong message to the entire fashion industry, indicating that pricing policies within vertical relationships must comply with legal standards.
This ruling may prompt wider compliance overhauls across the luxury fashion sector, particularly concerning pricing and distribution policies. Beyond reputational impact, the brands could potentially face civil damages claims from retailers or consumers under national laws, as the Commission’s decisions, once final, serve as binding proof in such proceedings. This landmark enforcement marks a significant moment, reminding even the most exclusive brands that they are not above competition law.
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