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EU antitrust regulators scrap probe into fashion designers

Published 04/05/2024, 07:07 AM
Updated 04/05/2024, 11:24 AM
© Reuters. Models present creations by designer Dries Van Noten as part of his Fall-Winter 2024/2025 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, February 28, 2024. REUTERS/Gonzalo Fuentes/File Photo

By Foo Yun Chee

BRUSSELS (Reuters) - EU antitrust regulators have scrapped a two-year-long investigation into a group of fashion designers who had called for changes in sales periods and discounts, the European Commission said on Friday, citing "priority reasons".

The competition watchdog raided several fashion companies in May 2022 on concerns that they may have taken part in a cartel to fix prices. It did not name the companies.

The raids were prompted by an open letter issued in 2020 by some fashion designers which called for fundamental changes in the industry to make it more environmentally and socially sustainable, people with direct knowledge of the matter had told Reuters.

Hundreds of companies around the world, including Dries Van Noten, Thom Browne, Proenza Schouler, Lane Crawford, Mary Katrantzou, Gabriela Hearst, Altuzarra and Missoni Group, had signed the open letter.

"The European Commission has decided to close its preliminary investigation into this matter for priority reasons. The closure is not a finding of compliance or non-compliance of the conduct in question with EU competition rules," a Commission spokesperson said.

© Reuters. Models present creations by designer Dries Van Noten as part of his Fall-Winter 2024/2025 Women's ready-to-wear collection show during Paris Fashion Week in Paris, France, February 28, 2024. REUTERS/Gonzalo Fuentes/File Photo

"The Commission may open a new investigation into the same conduct, should new evidence emerge that would warrant further investigation."

Companies risk fines as much as 10% of their global annual turnover for antitrust violations.

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