Background and findings
RPM occurs when a supplier requires or pressures retailers to sell its products at specified prices rather than setting prices independently. This is prohibited under EU and national competition rules. Following unannounced inspections in April 2023 and the opening of formal proceedings in July 2024, the Commission found that Gucci, Chloé, and Loewe imposed RPM on independent online and offline retailers for nearly their entire range of products. The fashion houses required retailers not to deviate from recommended prices, discount levels and sales periods, and at times prohibited discounts altogether. Gucci also instructed its retailers to stop online sales for a specific product line, which also contradicts EU competition law. According to the Commission, these practices deprived retailers of pricing independence, reduced competition, and shielded the brands’ direct sales from price pressure. It therefore concluded that the conduct constituted prohibited agreements under Article 101 TFEU.
Because Gucci, Chloé and Loewe actively cooperated with the Commission during its investigation, their fines were reduced by up to 50%.
Implications for Businesses
The Commission’s decision highlights competition authorities’ continued focus on tackling RPM and other restrictions that impact online sales and dual distribution models. This is not an isolated instance; in 2018, the Commission imposed significant fines on Asus, Denon & Marantz, Philips, and Pioneer for similar RPM practices that limited online retailers’ freedom to set prices across a broad range of consumer electronics. Similarly, the Netherlands Authority for Consumers and Markets (ACM) fined LG and Samsung €8 and €39 million respectively for prohibited RPM. LG and Samsung are accused of monitoring online prices and influencing pricing of retailers under the pretext of price recommendations. Both cases are currently under litigation.
Therefore, businesses should carefully review their distribution and pricing strategies to ensure full compliance with EU and national competition rules. While suppliers may offer non-binding price recommendations, they must refrain from interfering with retailers pricing by sharing competitor pricing information or acting on complaints about lower prices. Pricing decisions must remain at the sole discretion of the retailer.
Competition Event
On 20 November, Houthoff will host the Competition Event, offering insights into how evolving enforcement tools, geopolitical developments, and shifting regulatory approaches are reshaping the landscape of competition law, with a reflection on recent trends and an outlook on 2026. Are you interested in joining the Competition Event? Then express your interest here (event is in Dutch).