-By Ankita Dutta.
Gucci, one of the most recognisable names in the luxury fashion category, is among the corporations being probed by the European Commission for alleged cartel activity.
Kering, the company that owns Gucci, acknowledged this in a news release. “On April 18, 2023, the European Commission commenced the inspection of Gucci’s Italian facilities, a Kering affiliate, as a component of an assessment carried out under EU antitrust rules as part of an initial investigation into the fashion sector.” “In all aspects of the present investigation,” he continued, “the group will fully cooperate with the Commission.”
The European Commission stated on Tuesday that it had conducted a series of investigations at the administrative offices of several textile producers across Europe, but provided no further details. The companies under investigation are suspected of violating Articles 101 of the Treaty on the Functioning of the European Union and 53 of the Agreement on the European Economic Area, that “prohibit cartels and other restrictive business practises.” The announcement that Gucci makes up one of the brands under investigation concentrates the matter on the luxury goods market. None of the other businesses has acknowledged being involved in the inquiries.
This is the European Commission’s Director General for Competition’s third probe into the textile industry in the last two years. The first began in June 2021, however in this case, the inspections concentrated on German clothing distribution companies. He announced an overlapping probe to the one disclosed on Tuesday in May of last year, though Brussels emphasised that the two were not associated. He did so in a press statement similar to the one issued on Tuesday. In accordance to the records of the Community competition authority, this lawsuit has made no substantial progress since then.
