The European Commission (EC) has released information regarding a potential breach of EU antitrust rules by world-renowned fashion designer Pierre Cardin and largest licensee Ahlers. The agreement between the two organizations has limited cross-border trade of Pierre Cardin-licensed clothing as well as sales to specific customers over the past decade in the European Economic Area (EEA).
The EC expressed their view stating “Consumers in the EU must be able to shop around for the best deals. Our concern is that the licensing and distribution practices of Pierre Cardin and Ahlers, its largest licensee, may have prevented consumers from benefiting from lower prices and a greater choice of clothing.” Executive Vice President Margrethe Vestager continued to explain the situation and emphasized the need for active competition between retailers.
The coordination between Pierre Cardin and Ahlers ultimately led to an established ‘absolute territorial protection’, violating EU rules that prohibit such agreements between organizations. This commission alerted the companies when it first obtained evidence of the potential competition law breach in December 2019.
Related: EU Opens Antitrust Probe Into Couture Designers
The decision has neither been approved nor rejected, and no legal outcome is guaranteed. If approved, the Commission’s decision would be legally binding and may face fines up to 10% of the company’s annual accumulated sales. No regulations have been confirmed yet, as Pierre Cardin and Ahlers have been granted a right to defend themselves and present arguments at a meeting with the Commission.
Ahlers is not the only name associated with the fashion industry in the spotlight, as Dyson is also seeking for potential competition law breach. Both companies are seeking a conclusion from the commission due to the looming legal findings.
The potential breach in the fashion industry will be closely monitored by the EC as Erling Dörflinger, spokesman for Executive Vice President Margrethe Vestager, confirmed: “The case is still ongoing and therefore we are not in a position to provide any further information at this stage.”
Source: EC Europa
Featured News
European Music Streaming Firms Rally Against Apple’s Proposed Remedies
May 9, 2024 by
CPI
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI