European union investigates pricing practices of fashion houses

One of the three sources revealed that European competition authorities are seeking to determine whether these companies impose in-store prices on multi-brand retailers selling their products, threatening to withhold supply if these prices are not adhered to.

Such practices are illegal in the European Union, where any violation can result in fines of up to 10% of the company's global turnover.

The European Commission and Kering declined to comment on the matter.

In April, the French group confirmed that Gucci was cooperating with European investigators after Reuters reported that competition authorities had conducted a raid at the brand's Milan headquarters.

The European Commission, which did not disclose the identity of the companies targeted in the raids, stated at the time that they may have violated European regulations on cartels and restrictive business practices, without providing further details.

In 2018, American brand Guess was fined €40 million for preventing distributors from independently setting the selling prices of its products.