Kering confirmed at the time that Gucci was cooperating with EU regulators after Reuters previously reported the EU dawn raid on its site in Milan, which makes such products.

The Commission, which did not name the companies it raided, said at the time that they may have breached EU antitrust rules against cartels and restrictive business practices but did not provide details.

The EU competition watchdog is investigating whether the companies are imposing consumer prices on multi-brand retailers selling their products and threatening not to sell to them if they do not respect these prices. Such practices are illegal under EU antitrust rules and breaches can lead to fines up to 10% of a company’s global turnover.

U.S. clothing company Guess was hit with a €40 million fine in 2018 for preventing retailers from setting the retail price of its products independently.

Source: Reuters