Luxury Fashion Titans Fined: EU's Antitrust Crackdown on Pricing Fixation

European antitrust regulators have fined Gucci, Chloe, and Loewe a collective 157 million euros for price-fixing strategies that limited resale pricing flexibility. This action underscores increased regulation scrutiny on luxury brands. Kering's Gucci, LVMH's Loewe, and Richemont's Chloe responded by enhancing compliance measures following probe resolution.

The European Union's antitrust authorities have imposed a hefty fine of 157 million euros on luxury giants Gucci, Chloe, and Loewe for colluding on resale pricing strategies. Gucci, under Kering, was hit hardest with a 119.7 million euro fine, highlighting the intensifying regulatory lens on the luxury sector.

The European Commission revealed that these companies interfered with retailers' pricing strategies by enforcing restrictions such as sticking to recommended retail prices and setting maximum discount rates. Kering reported that it resolved the EU probe in cooperation with Gucci, and the financial impact was already accounted for in its 2025 first-half results.

LVMH's Loewe affirmed its commitment to antitrust compliance in light of the deal with the EU, while Richemont's Chloe is bolstering its adherence to competition laws following the 2023 investigation. This scrutiny is part of a broader regulatory effort affecting luxury brands, including those faced with allegations of worker abuses and data breaches.

(With inputs from agencies.)