admin French brand Pierre Cardin and German licensee Ahlers risk a fine from the European Commission, after a preliminary investigation by the European Commission showed that the two companies may have violated EU competition rules, according to a statement.
The commission is concerned that Pierre Cardin and Ahlers have signed several anti-competition agreements for over a decade and have jointly restricted the sale of other Pierre Cardin licensees both online and offline.
If Pierre Cardin and Ahlers are indeed found guilty of violating the competition rules of the European Commission, the parties can be fined up to 10 percent of annual worldwide turnover. However, it is not clear when the investigation is expected to be completed.
“Consumers in the EU should be able to find the best deals. We are concerned that the licensing and distribution practices of Pierre Cardin and Ahlers, the largest licensee, have prevented consumers from benefiting from lower prices and greater choice of clothing,” said Margrethe Vestager, from the European Commission, in the statement.
