European Commission fines Gucci, Chloé and Loewe €157 million for price fixing: when luxury crosses the line

On October 14, 2025, the European Commission announced one of the most significant antitrust decisions in recent years for the fashion industry.

Three luxury houses — Gucci, Chloé and Loewe — were found guilty of restricting competition and fined a total of €157.2 million (about $182 million).

Gucci received the largest fine — €119.6 million, followed by Chloé with €19.6 million and Loewe with €18 million.

The penalties were reduced after the brands cooperated with the investigation: Gucci and Loewe received a 50% reduction, while Chloé’s fine was lowered by 15%.

The nature of the infringement

The Commission’s investigation revealed that the companies restricted independent retailers’ freedom to set their own prices for products across multiple categories, including clothing, leather goods, footwear and fashion accessories.

The luxury houses imposed minimum resale prices, set maximum allowable discounts, and in some cases prohibited discounts altogether. They also dictated specific timeframes for sales campaigns, effectively controlling retail pricing both offline and online.

These practices were in effect from April 2015 to April 2023 for Gucci and Loewe, and from 2019 for Chloé.

All three brands discontinued the unlawful conduct in 2023, when the Commission opened formal proceedings.

The investigation was triggered by complaints from multiple retailers who claimed they were threatened with termination of contracts if they lowered prices or ran unauthorized promotions.

The Commission’s reasoning

According to the Commission, these practices undermined fair competition within the EU’s single market and violated Article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits anticompetitive agreements.

By denying retailers the ability to set their own prices, the brands artificially inflated retail prices and reduced consumer choice, which the EU sees as a direct attack on the principle of free and undistorted competition.

In her public statement, European Commissioner for Competition Teresa Ribera emphasized:

“This decision sends a clear signal to the fashion industry and beyond: in Europe, fair competition and consumer protection apply to everyone equally — from supermarkets to luxury houses.”

The size of the fines

• Gucci: €119.6 million

• Chloé: €19.6 million

• Loewe: €18 million

Both Gucci and Loewe received a 50% reduction in penalties for active cooperation with the investigation, while Chloé’s fine was cut by 15% under the same leniency framework.

The Commission noted that cooperation significantly accelerated the resolution of the case and reduced the need for lengthy litigation.

A pattern in luxury retail

In the world of luxury fashion, maintaining control over brand positioning and pricing is common. Many houses see tight control over retail pricing as essential to preserving brand exclusivity and protecting profit margins.

However, the EU has repeatedly clarified that price maintenance and discount restrictions are unlawful when they prevent genuine competition among distributors.

Previous cases have targeted Nike, Guess and Richemont, but the Gucci case stands out as one of the largest penalties ever imposed in the fashion sector.

Analysts point out that this decision comes amid a broader EU crackdown on vertical restraints, particularly in e-commerce, where online transparency and algorithmic pricing have reshaped how brands compete.

Consequences and next steps

Following the decision, all three brands confirmed they had ceased the infringing practices and expressed commitment to compliance with EU competition law.

The Commission, while acknowledging their cooperation, indicated that further investigations may follow in other segments of the luxury goods market, such as cosmetics, jewelry and watches.

This ruling establishes a strong precedent for national competition authorities across the EU, providing a reference point for future cases involving resale price maintenance and vertical price controls.

Implications for business

The case highlights a fundamental tension between brand management and competition compliance.

In the European Union, imposing minimum resale prices, restricting discounts or dictating sale periods can expose companies to severe financial and reputational risks.

Businesses operating through selective or exclusive distribution networks should regularly review their vertical agreements, especially those related to digital sales, where even indirect price influence can be seen as anticompetitive.

The message from Brussels is unambiguous:

Luxury cannot be built on price control.

Exclusivity may elevate a brand — but in Europe, it does not place it above the law.