The European Commission has imposed a €5.7 million fine (28 November) on Pierre Cardin and its largest licensee, Ahlers, for violating EU antitrust laws by restricting cross-border sales of Pierre Cardin-branded clothing.
The Commission’s investigation revealed that between 2008 and 2021, the companies engaged in practices that undermined competition within the European Economic Area (EEA), in breach of Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement.
Pierre Cardin, a renowned French fashion house, licenses its brand to third-party manufacturers and distributors. Ahlers, which held the largest Pierre Cardin license within the EEA, was found to have entered into anti-competitive agreements with Pierre Cardin to prevent other licensees and their customers from selling Pierre Cardin clothing outside their designated territories. The companies also aimed to block sales to low-price retailers who offered the products at more competitive prices.
The Commission’s findings showed that these practices hindered competition by artificially partitioning the internal market, restricting retailers’ ability to source products from lower-priced regions, and ultimately harming consumers. As a result, Ahlers and Pierre Cardin were fined €5.7 million, with Ahlers receiving the largest fine of €3.5 million, while Pierre Cardin was fined €2.2 million.
Margrethe Vestager, the European Commission’s Executive Vice-President responsible for competition policy, commented, “Today, we have fined Pierre Cardin and its licensee Ahlers for restricting cross-border trade in clothing, in breach of competition rules. This behaviour illegally fragmented our Single Market. It prevented consumers from shopping around for a better deal and from benefiting from greater choice.”
The Commission’s investigation was prompted by unannounced inspections at Ahlers’ premises in June 2021, followed by formal proceedings in January 2022. The case highlights the Commission’s ongoing efforts to protect the Single Market from anti-competitive behavior that harms both consumers and the broader economy.
In addition to the fines, the Commission emphasized that affected individuals or businesses could seek damages through national courts, with a final Commission decision serving as binding proof of the illegal conduct. The fines imposed will contribute to the EU budget, reducing the financial burden on taxpayers.
Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_24_6104
