“Prioritization reasons”. That’s why EU Antitrust authorities decided to quit the investigation on the alleged cartel of luxury brands on price tags. The investigation lasted two years and have also included surprise inspections in high-end companies (including Gucci). This claim was that luxury brands had used restrictive commercial practices to limit competition. The investigation followed an open letter published in 2020 by some of these fashion brands.
The alleged cartel of luxury brands on price tags
“The European Commission has decided to close the investigation on this matter due to prioritization reasons. This stop to the investigation doesn’t mean the party was either at fault or innocent – said to Reuters a spokesperson of the Commission -. The Commission can open a new investigation into the same conduct if new proof was to emerge and thus justify it”. At least for now, the luxury segment seems to be safe. Companies involves risked of having to pay a fine for up to 10% their revenue if found guilty.
Open letter
It’s curious that the investigation only started after the publishing of a letter in 2020. Some fashion brands and designers, during the pandemic, asked for changes in the industry to make it more sustainable from an environmental and social standpoint. According to Reuters, there were hundreds of signatories including Dries Van Noten, Thom Browne, Proenza Schouler, Lane Crawford, Mary Katrantzou, Gabriela Hearst, Altuzarra and Missoni Group. After two years, the investigation closed without getting anywhere.
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