In this month’s European Competition Law Newsletter, it’s revealed that the European Commission has begun investigations into potential restrictions on sales of branded clothing within the EU.
On July 31, 2023, the European Commission announced sending a statement of objections to French fashion house Pierre Cardin and its licensing partner Ahlers. This document is a preliminary statement of case, suggesting that both entities may be guilty of violating EU competition laws through their licensing and distribution practices (Read more).
The EU competition law regulates business practices that prevent, restrict or distort competition within the EU’s internal market. The current investigation targets the trading conditions implemented by Pierre Cardin and Ahlers that might have been restricting the sales of branded clothing startlingly.
As it stands at this stage of the investigation, the statement issued is simply an objection, not a determination. Both Pierre Cardin and Ahlers have the right to examine the Commission’s evidence, write replies, and request a hearing to present their case. The outcome of these investigations, however, could impact the licensing and distribution arrangements of branded clothing companies across Europe.
Future updates on this matter will be provided as the case develops further. Keep abreast and advise your teams accordingly.