Europe’s luxury fashion industry is facing a historic reckoning as antitrust regulators unleash enforcement targeting resale price maintenance (RPM), which will fundamentally reshape how iconic brands operate and market themselves. In October 2025, landmark fines totaling more than $182 million (€157 million) were levied against Gucci, Chloé, and Loewe, sending an unequivocal message: price-fixing and opaque marketing practices will no longer be tolerated—regardless of prestige or heritage.
Luxury Fashion Meets Enforcement
The European Commission’s cases against Gucci (Case AT.40840), Chloé (Case AT.40880), and Loewe (Case AT.40881) highlight the issue of RPM, where suppliers dictate minimum resale prices to retailers, directly stifling price competition and ultimately affecting consumers. Under Article 101 of the Treaty on the Functioning of the European Union, RPM is classified as a “hardcore” infringement, subjecting it to severe penalties. As Goodwin’s antitrust alert notes:
“Europe’s regulators are rewriting the rule book for the industry: A compelling brand story no longer outweighs the need for lawful and transparent market conduct.”
The Infringements: What Happened and Why
The Commission found that the three luxury houses—Italy’s Gucci (Kering), France’s Chloé (Richemont), and Spain’s Loewe (LVMH)—systematically restricted independent retailers across the apparel, leather goods, footwear, and accessories sectors. These practices included:
- Enforcing recommended retail prices
- Capping maximum discount rates
- Restricting promotional sales periods
- Sometimes, banning discounts entirely
Gucci also imposed direct online sales bans, instructing retailers to remove specific product lines from e-commerce platforms. Rigorous monitoring followed any deviations; most retailers complied, resulting in lost pricing autonomy and reduced consumer choice.
Practices began in 2015 for Gucci and Loewe, and in 2019 for Chloé, continuing until April 2023, when the European Commission raided the company’s premises.
How Cooperation Shaped Penalties
Each brand cooperated with the investigation, securing reductions in fines:
- Gucci received a 50% reduction (down to $138.83 million/€119.67 million)
- Chloé: 15% ($22.85 million/€19.69 million)
- Loewe: 50% ($20.90 million/€18.01 million)
Gucci’s proactive disclosure brought previously unknown infringements to regulators, while Loewe extended the scope of the investigation. None of the companies has announced appeals, underscoring the indelible mark these decisions leave.
Lessons and Takeaways for Fashion Brands
The Commission’s verdict sends lessons from boardrooms to retail floors:
- RPM is high risk: Direct or indirect attempts to set minimum resale prices or pressure retailers can attract hefty fines and reputational damage.
- Cooperation can reduce penalties: Timely, material evidence—especially new to authorities, can substantially decrease sanctions.
- Internal compliance is essential: policies, staff training, contract reviews, and audits are all crucial.
- Prepare for dawn raids: Robust protocols for unannounced inspections are needed.
The Expanding Scope: Sustainability and Consumer Protection
This crackdown fits within a broader regulatory sweep also targeting environmental and consumer protection claims.
- The Netherlands Authority for Consumers and Markets (ACM) has ramped up sustainability rules following probes into Decathlon and H&M.
- ACM joined a multi-country investigation into SHEIN and scrutinized Primark’s advertising.
- Italy’s AGCM fined Infinite Styles (SHEIN operator) €1 million for misleading “eco-friendly” marketing, and began proceedings against Giorgio Armani and Christian Dior for consumer code breaches. Dual-price tag tactics in outlets were also pursued.
Litigation Risks Beyond Fines
Legal risk extends beyond fines: companies found guilty of RPM may face follow-on damages claims in national courts as retailers and consumers seek compensation for losses. These actions often rely directly on the Commission’s findings as proof, escalating legal exposure across Europe.
What’s Next: Roadmap for Compliance
The crackdown signals intensified enforcement against:
- Online and omnichannel pricing
- Sustainability claims
- Algorithm-driven pricing
- No-poach and wage-fixing arrangements
- Vertical agreements and selective distribution
Regulators make it clear:
“Fair competition and consumer protection apply across all market tiers—luxury included.”
Looking Forward
Price-fixing and misleading claims threaten not just reputation, but existence, subject to multimillion-dollar fines and litigation. Smart fashion leaders will build compliance programs, review contracts, and substantiate every claim.
