Antitrust: Commission sends Statement of Objections to Pierre Cardin and its licensee Ahlers over distribution and licensing practices for clothing

The European Commission has informed Pierre Cardin and its licensee Ahlers of its preliminary view that the companies may have breached EU antitrust rules by restricting cross-border sales of Pierre Cardin-licensed clothing, as well as sales of such products to specific customers.

The Commission has concerns that, for more than a decade, Pierre Cardin and Ahlers entered into anticompetitive agreements and coordinated to restrict the ability of other Pierre Cardin licensees and their customers to sell Pierre Cardin-licensed clothing, both offline and online: (a) into Ahlers' EEA licensed territories; and/or (b) to low-price retailers (such as discounters) offering lower prices to consumers in such territories.

The Commission preliminarily found that the ultimate objective of such coordination between Pierre Cardin and Ahlers was to ensure Ahlers' absolute territorial protection in the countries covered by its licensing agreements with Pierre Cardin in the EEA.

If the Commission's preliminary view were confirmed, the companies' behaviour would violate EU rules that prohibit anticompetitive agreements between companies (Article 101 of the Treaty on the Functioning of the European Union (‘TFEU') and Article 53 of the EEA Agreement). Sending a Statement of Objections does not prejudge the outcome of an investigation.

Executive Vice President Margrethe Vestager (pictured), in charge of competition policy, said: "Consumers in the EU must be able to shop around for the best deals. Our concern is that the licensing and distribution practices of Pierre Cardin and Ahlers, its largest licensee, may have prevented consumers from benefiting from lower prices and a greater choice of clothing.” 

A press release is available online.

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