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.
“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 percent of their global annual turnover for antitrust violations.
By Foo Yun Chee; Editing by Devika Syamnath
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EU Cartel Raids Target Designers Proposing Sales Periods, Discount Changes
The European Commission, which did not name the companies nor the countries in which it conducted the dawn raids, said the firms may have violated EU cartel rules against restrictive business practices, which include price-fixing.