Pierre Cardin, Ahlers Agreed to Restrict Sales, European Commission Finds

PARIS — Pierre Cardin and its Germany-based licensee Ahlers appear to have agreed to restrict cross-border sales as well as sales to specific customers, according to a statement of objection sent Monday by the European Commission.

“The Commission’s preliminary view is that Pierre Cardin and Ahlers agreed to restrict sales by other licensees into Ahlers’ licensed territories; and/or to low-price retailers in such territories,” said the EC, the executive arm of the European Union in charge of implementing the regulations of the European Parliament and the EU.

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The goal of this coordination between the two companies was “to ensure Ahlers’ absolute territorial protection in the countries covered by its licensing agreements with Pierre Cardin” within the European Economic Area, it continued.

Neither Pierre Cardin nor Ahlers immediately responded to a request for comment.

Antitrust regulators conducted an unannounced inspection of the French fashion house and the German clothing manufacturer in 2021, followed by the opening of a formal investigation in early 2022 into the two companies.

The EC said a statement of objections and formal investigation do not prejudge the investigation’s outcome, and that parties involved can present their comments on the case to representatives of the EC and national competition authorities.

Companies that breach the EU’s antitrust rules face fines of up to 10 percent of their global turnover.

The EC has been increasingly active in pursuing suspected anti-competitive practices. The price fixing practices fall under the antitrust regulations that prohibit agreements between companies that distort competition within the single market trading bloc. In recent years, it has stepped up its efforts to enforce rules against curbs on cross-border imports and online sales.

In April, antitrust regulators conducted unannounced inspections into a number of undisclosed companies in several countries of the 27-member bloc to investigate business practices that could lead to fragmentation in the single market. Among the companies inspected was Gucci, parent company Kering confirmed after Reuters reported the brand was among those targeted.

Several beauty and fragrance companies linked to the supply of fragrance or fragrance ingredients also came under investigation in March.

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