RPM constitutes a “hardcore restriction” under the EU Vertical Block Exemption Regulation and has been repeatedly condemned by the Commission and national competition law authorities. It involves the imposition upon distributors of minimum or fixed resale prices. This restricts the ability of distributors to independently determine their own prices on the downstream market.
As is often the case, the Commission carried out dawn raids at the premises of Gucci (Italy), Chloé (France) and Loewe (Spain).
The Commission’s investigation identified that all three organisations independently engaged in RPM by restricting the ability of both their online and brick-and-mortar retailers (including independent resellers) to determine their own retail prices. The restrictions applied to almost the entire ranges of products designed by the three organisations under their respective brand names include apparel, leather goods, shoes and accessories.
The three organisations interfered with the independent commercial strategies of their retailers, depriving them of their independence on the market. They did so by imposing restrictions requiring the retailers not to deviate from (i) recommended retail prices (ii) maximum discount rates and (iii) specific sale periods. In certain cases, they also prohibited retailers from offering any discounts.
They sought to guarantee compliance with the restrictive agreements by monitoring the retailers’ prices and contacting those who had deviated from the pricing policies imposed.
The Commission’s primary concern was that these anti-competitive practices deprived retailers of their pricing independence and reduced competition among them. The Commission found that this resulted in higher prices and reduced choice for consumers.
In accordance with the Commission’s antitrust cooperation procedure, fine reductions were applied following cooperation by all three organisations.
The fines imposed were:
| Company | Reduction for cooperation | Fine (after reduction) |
| Gucci | 50% | €119 674 000 |
| Chloé | 15% | €19 690 000 |
| Loewe | 50% | €18 009 000 |
The Commission’s announcement sends a clear signal that RPM is an enforcement priority and that the retail sector, including fashion and luxury goods, are under continued scrutiny.
Several recent RPM cases have involved fashion brands. In 2024, the Commission fined fashion brand, Pierre Cardin, €7 million for preventing cross-border sales to retailers that sold the clothes to consumers at lower / discounted prices.
The Commission’s press release reminds affected parties that they have the opportunity to bring a follow on damages claim based on the established breach of EU competition law.
The Commission’s announcement provides several key takeaways for all businesses, particularly those in the retail sector.
If your business doesn’t have a dawn raid policy or if you would like to discuss how to manage competition law risks, please contact us.
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