PARIS – The European Commission is once more taking aim at the style sector with several investigations into anti-competitive practices.
Antitrust regulators on Tuesday conducted unannounced inspections on a lot of undisclosed firms in several countries of the 27-member bloc to research business practices that could lead on to fragmentation in the one market. Price fixing, collusion and limiting production are among the many infractions being investigated, the EC said in a press release.
“The Commission has concerns that the businesses concerned can have violated EU antitrust rules that prohibit cartels and restrictive business practices including certain horizontal and vertical restrictions,” it said.
“Unannounced inspections are a preliminary investigative step into suspected anti-competitive practices,” it added. Investigators are on the lookout for evidence of collusion and operating as a “secret cartel” amongst associated firms.
The Commission also sent requests for information to several firms across the sector, but didn’t release information in regards to the firms being investigated, or the countries where the raids took place. It specified that the investigations were latest and never related to prior inquiries conduced in May 2022 and June 2021.
The 2021 raid targeted French fashion house Pierre Cardin and its licensing and distribution take care of German clothing maker Ahlers. Six months later the commission opened a proper investigation into Pierre Cardin and Ahlers for blocking cross-border and online sales in addition to restricting sales to specific consumer groups.
The EC is the manager arm of the European Union, answerable for implementing the regulations of the European Parliament and the EU.
It has been increasingly lively in pursuing suspected anti-competitive practices. The worth fixing practices fall under the anti-trust regulations that prohibit agreements between firms that distort competition inside the single market trading bloc. Lately, it has stepped up its efforts to implement rules against curbs on cross-border imports and online sales.
In March, the EC launched unannounced investigations into several beauty and fragrance firms linked to the provision of fragrance or fragrance ingredients.
Corporations that breach the EU anti-trust rules face fines of as much as 10 percent of their global turnover.
The EC said inspections being carried out doesn’t mean firms are guilty and that they don’t prejudge the investigation’s end result.
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