EU Fines Pierre Cardin and Ahlers €5.7 Million for Anti-Competitive Practices

The European Commission has penalized French fashion house Pierre Cardin and its largest licensee, Ahlers, €5.7 million for violating the EU’s antitrust laws. The fines were imposed after an investigation revealed that the two companies engaged in anti-competitive agreements and practices designed to curb cross-border trade of Pierre Cardin-branded clothing.

According to the Financial Times, the Commission found that between 2008 and 2021, the companies collaborated to shield Ahlers from competition within the European Economic Area (EEA). These actions ensured Ahlers retained “absolute territorial protection” in countries covered by its licensing agreements, effectively fragmenting the single market and limiting consumer options.

“Today, we have fined Pierre Cardin and its licensee Ahlers for restricting cross-border trade in clothing, in breach of competition rules,” said Margrethe Vestager, the EU’s executive vice-president overseeing competition policy. She criticized the companies for undermining the single market, preventing consumers from accessing better deals, and stifling greater choice.

This ruling highlights ongoing efforts by EU regulators to combat pricing disparities within the bloc. Earlier this year, Brussels fined U.S.-based confectionery company Mondelēz for restricting the movement of its products between member states, a practice that similarly obstructed the single market.

Read more: EU Commission Investigates Pierre Cardin for Antitrust Violations

Retailers across the EU have long criticized territorial supply constraints, which force them to purchase branded goods domestically even when cheaper options are available in other member states. For example, a supermarket in the Netherlands might be compelled to buy chocolate from local suppliers rather than sourcing it from Germany, where larger markets drive down costs.

EuroCommerce, a trade association for retailers, has argued that such restrictions cost European consumers an estimated €14 billion annually, citing a 2020 Commission study. The penalties against Pierre Cardin and Ahlers signal Brussels’ determination to eliminate these barriers and uphold the principles of the single market.

Source: The Financial Times