The European Commission has imposed a €39.8 million fine
on the fashion company Guess for online sales and advertising restrictions, reduced
by 50% as a result of the company’s admissions.
The Commission found that Guess limited its retail
distributors from using its trademarks and brand names for online search
advertising or online selling without its permission. The arrangements also restricted retailers in
selling outside their allocated territory, making cross-supplies to other
authorised distributors and independently setting retail prices.
The Commission maintains that Guess divided markets in
eastern and central Europe where retail prices for its products were, on
average, 5-10% higher than in western Europe.
The Commission reduced the fine by 50% to take account of
the fact that Guess drew the practices to its attention and provided
significant information for the antitrust investigation. Guess also admitted liability and its
participation in the infringement.
This case is among the first cases where Commission has
used its new cooperation procedure in respect of non-cartel conduct and where
an investigated party admits the facts and liability in return for a reduction
in the fine.
The probe was launched on the back of the Commission’s
e-commerce sector inquiry.
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