EU antitrust regulator halts investigation into fashion designer By Reuters

By Puyunchi

BRUSSELS (Reuters) – EU antitrust regulators have halted a two-year investigation into a group of fashion designers who demanded changes to sales periods and discounts, the European Commission said on Friday, citing “overriding reasons.”

The competition watchdog raided several fashion companies in May 2022 over concerns they may have joined a cartel to fix prices. The company name was not disclosed.

The crackdown was prompted by an open letter published in 2020 by some fashion designers calling for fundamental changes in the industry to make it more environmentally and socially sustainable, people with direct knowledge of the matter told Reuters.

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

“The European Commission has decided to close its preliminary investigation into this matter for overriding reasons. This closure does not constitute a conclusion that the conduct in question complies or does not comply with EU competition rules,” a Commission spokesperson said.

“If new evidence emerges that warrants further investigation, the Commission may commence a new investigation into the same conduct.”

Companies risk being fined up to 10% of their global annual revenue for antitrust violations.