EU antitrust probing fashion's pricing policies

EU antitrust regulators are investigating the pricing practices of luxury fashion firms, according to Reuters, which cited sources familiar with the matter.

In April, the European Commission conducted unannounced inspections at the premises of companies in the fashion industry across several Member States. The focus of the investigation is on how these firms set prices for distributors of handbags and leather goods.

The Commission has not disclosed the names of the companies involved but stated that they may have violated EU antitrust rules. The investigation aims to determine whether the companies are imposing prices on multi-brand retailers and threatening to withhold supply if the prices are not adhered to. Such practices are illegal under EU antitrust regulations and can result in fines of up to 10 percent of a company's global turnover, Reuters said.

Kering, the parent company of Gucci, confirmed its cooperation with EU regulators following the dawn raid at its Milan site, however neither the fashion giant nor the European Commission have provided further statements on the matter.

It is important to note that the unannounced inspections conducted by the Commission are a preliminary step in investigating suspected anticompetitive behavior. The fact that inspections are carried out and information is requested does not imply guilt on the part of the companies involved, nor does it prejudge the outcome of the investigation itself. The Commission said in a statement it will continue to gather evidence and analyse the situation to determine if any breaches of antitrust rules have occurred.