The European Commission has demonstrated that it remains focused on vertical restrictions that directly impact consumers with its fine of fashion house Pierre Cardin and its largest licensee, Ahlers.
The long-established fashion house, Pierre Cardin, licenses its trademark to third parties in order to allow them to manufacture and distribute products bearing the 'Pierre Cardin' mark. Ahler is its largest licensee within the EEA.
On 22 June 2021 the Commission carried out a dawn raid at the premises of Ahler, then opening formal proceedings against both Pierre Cardin and Ahler in January of 2022. In July 2023, the parties received their Statement of Objections.
On 28 November 2024, the Commission issued a press release stating that it had concluded that, between 2008 and 2021, Pierre Cardin had entered into anticompetitive agreements and concerted practices with Ahler in order to protect the licensee from competition in the EEA countries where it held the license. In partiular the Commission found that the agreements had sought to prevent other licensees and customers from:
selling, whether online or offline, outside of their terriroties; or
from selling Pierre Cardin products to low-priced retailers.
A full decision is yet to be published, but it will be interesting in light of the Commission's findings in previous cases where certain vertical restrictions in the luxury goods sectors have been permitted in order to allow the brand to protect the 'luxury aura' of its goods and thereby its brand value.
Comments