Resale Price Fixing in Fashion: European Union Imposes $182 Million Fine on Gucci, Chloé, and Loewe (The Global Regulatory Developments Journal)

In their recent article in The Global Regulatory Developments Journal, Goodwin partners Athena Kontosakou, Eram Khan, and Anuj Ghai and associate Maria Belen Gravano explain that, in a landmark decision, the European Commission recently fined Gucci, Chloé, and Loewe more than $182 million (€157 million) for engaging in resale price maintenance (RPM) — a practice in which a supplier dictates or influences the minimum price at which a reseller must sell its products. Under EU competition law, RPM is considered a serious restriction of competition as it limits price competition between retailers and can lead to higher prices for consumers. It is treated as a “hardcore” infringement under Article 101 of the Treaty on the Functioning of the European Union, and it typically attracts substantial fines. This decision does not stand alone. Across Europe, regulators are expanding their oversight beyond pricing conduct to scrutinize the ethics of fashion marketing itself.

Read the full analysis: “Resale Price Fixing in Fashion: European Union Imposes $182 Million Fine on Gucci, Chloé, and Loewe” (The Global Regulatory Developments Journal)