PARIS — France’s competitors authority on Thursday fined eyewear maker Luxottica 125 million euros for price-fixing and stopping retailers from promoting its merchandise on-line.
The French Competition Authority additionally utilized lesser fines of 130,000 euros for Chanel and 500,000 euros for LVMH Moët Hennessy Louis Vuitton. It declined to set a advantageous for eyewear producer Logo, which has since gone into liquidation.
EssilorLuxottica, the corporate based in 2018 from the merger of Italy’s Luxottica and France’s Essilor, stated it could enchantment the choice. Chanel and LVMH didn’t instantly reply to a request for remark.
The watchdog stated between 2005 and 2014, Luxottica supplied retailers with advisable costs for its licensed manufacturers, together with Chanel, Ray‑Ban, Oakley, Prada, Burberry, Bulgari, Dolce & Gabbana, Armani, Michael Kors, Miu Miu and Ralph Lauren, and prevented them from providing reductions and promotions.
Those who didn’t comply have been subjected to retaliatory measures comparable to late deliveries, or prevented from inserting orders, it stated.
“These practices, anticompetitive by nature, are serious. In particular, they involved the implementation of surveillance and retaliatory mechanisms. They have, moreover, affected end consumers who are partly captive and vulnerable, since prescription eyewear, and in some cases sunglasses, are a necessity,” the FCA stated in a press release.
“They also caused damage to the economy, insofar as this concerned well-known brands, affected intra-brand competition (price competition for the same product within different networks) for a long period of time, and affected a significant portion of retailers, including major national chains such as Alain Afflelou, Krys, GrandVision or Optical Center,” the authority added.
It stated LVMH and Logo individually mounted costs for Tag Heuer-branded eyewear between 1999 and 2015. LVMH didn’t contest the allegations, and thereby benefited from a decrease advantageous, it specified.
In addition, Chanel, Luxottica and LVMH prevented on-line gross sales. However, the FCA thought-about the injury attributable to these practices was extra restricted.
EssilorLuxottica stated it was assured that it could efficiently contest the choice.
“EssilorLuxottica firmly believes it has always conducted business according to the highest standard of compliance, always supporting customers, partners as well as the entire market. As such, the company strongly disagrees with the authority’s decision and considers the sanction highly disproportionate and groundless,” it stated in a press release.
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