The EU Commission fines €40 million a clothing company for online advertising and sales restrictions imposed on authorized resellers (Guess)

On December 17, 2018, the European Commission imposed a € 40 million fine on the US-based clothing company Guess for enacting contractual provisions and practices in its selective network of authorized wholesalers, monobrand and multi-brand retailers, contrary to Article 101(1) of the Treaty on the Functioning of the European Union (TFEU). According to the Commission’s decision, the contested conduct amounted to a restriction of intra-brand competition capable of partitioning the Single Market along national lines. The non-confidential text of the decision was published on January 25, 2019 (available here). The case is part of a new series of investigations by the European Commission targeting restrictive “vertical agreements”, particularly in the online environment, following the

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Authors

  • Portolano Cavallo (Milan)
  • Portolano Cavallo (Milan)

Quotation

Eugenio Foco, Enzo Marasà, The EU Commission fines €40 million a clothing company for online advertising and sales restrictions imposed on authorized resellers (Guess), 17 December 2018, e-Competitions December 2018, Art. N° 100175

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