Commission fines Pierre Cardin and its licensee Ahlers €5.7 million for restricting cross-border sales of clothing

This article is brought to you in association with the European Commission.


The European Commission has fined Pierre Cardin and its largest licensee Ahlers a total of €5.7 million for breaching EU antitrust rules by restricting cross-border sales of Pierre Cardin-branded clothing, as well as sales of such products to specific customers.

The infringement

Pierre Cardinis a French fashion house that licenses its trademark to allow third parties to manufacture and distribute Pierre Cardin branded clothing. Ahlers was the largest licensee of Pierre Cardin clothing in the European Economic Area (‘EEA’) during the infringement.

The Commission’s investigation found that, between 2008 and 2021, Pierre Cardin and Ahlers entered into anticompetitive agreements and engaged in concerted practices to shield Ahlers from competition in those EEA countries where the company held a Pierre Cardin licence, in breach of Article 101 of the Treaty on the Functioning of the European Union (‘TFEU’) and Article 53 of the EEA Agreement.

In particular, the Commission found that such anticompetitive agreements and concerted practices aimed at preventing other Pierre Cardin licensees and their customers from selling Pierre Cardin-branded clothing, both offline and online: (i) outside their licensed territories; and/or (ii) to low-price retailers (such as discounters) that offered the clothing to consumers at lower prices. 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.

These illegal practices prevent retailers from being able to freely source products in Member States with lower prices and artificially partition the internal market. 

Fines

The fines were set on the basis of the Commission’s 2006 Guidelines on fines. In setting the level of fines, the Commission took into account various elements, including the serious nature of the infringement, its geographic scope and its duration.

One of the parties submitted a claim for inability to pay the fine under point 35 of the 2006 Guidelines on fines, which the Commission thoroughly assessed. As a result, the Commission granted a reduction of the fine.

The breakdown of the fines imposed on each company is as follows:

CompanyFine (€)
Pierre Cardin2 237 000
Ahlers3 500 000
Total5 737 000

Background

Traders and retailers try to procure products in the internal market where the prices are lower and trade them to markets where prices are higher. This generally leads to price decreases in countries where prices are higher. Restrictions to such parallel trade can lead to the isolation of a national market whereby the manufacturer or supplier can charge higher prices to the detriment of consumers. They can also lead to less product diversity. Therefore, restrictions to parallel trade amount to non-regulatory barriers to a better functioning of the Single Market and are among the most serious restrictions of competition.

On 22 June 2021 the Commission carried out unannounced inspections at Ahlers’ premises and opened formal proceedings into possible anticompetitive conduct by Pierre Cardin and Ahlers on 31 January 2022. On 31 July 2023, the Commission sent the parties a Statement of Objections.

Article 101 of the TFEU and Article 53 of the EEA Agreement prohibit agreements and concerted practices which may affect trade and prevent or restrict competition within the Single Market. 

Fines imposed on companies found in breach of EU antitrust rules are paid into the general EU budget. These proceeds are not earmarked for particular expenses, but Member States’ contributions to the EU budget for the following year are reduced accordingly. The fines therefore help to finance the EU and reduce the burden for taxpayers.

Action for damages

Any person or company affected by anticompetitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the Court of Justice of the European Union and Council Regulation 1/2003 both confirm that in cases before national courts, a Commission decision that has become final constitutes binding proof that the behaviour took place and was illegal. Even though the Commission has fined the cartel participants concerned, damages may be awarded by national courts without being reduced on account of the Commission fine.

The Antitrust Damages Directive makes it easier for victims of anticompetitive practices to obtain damages. More information on antitrust damages actions, including a practical guide on how to quantify antitrust harm, is available here.

Whistleblower tool

The Commission has set up by a tool to make it easier for individuals to alert it about anticompetitive behaviour while maintaining their anonymity. The tool protects whistleblowers’ anonymity through a specifically designed encrypted messaging system that allows two-way communications. The tool is accessible via this link.

For more information

More information on this case will be available on the Commission’s competition website, in the public case register under the case number AT.40642.

Margrethe Vestager, Executive Vice-President in charge of competition policy

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe to get the latest posts sent to your email.

Interesting reads

© NASA The Strait of Hormuz which separates the United Arab Emirates and Iran is a strategically important shipping route

UN chief urges Iran and US to ‘urgently resume negotiations’ as Gulf strikes escalate

This article is published in association with United Nations. Renewed strikes and counterstrikes between Iran and the United States in the Gulf region have raised fears of a return to all‑out war, with Washington denying Tehran’s claim that it had closed the crucial Strait of Hormuz on Sunday. The US said it had struck around 140 […]
This article is published in association with United Nations.

Peak heat in Europe just broke historic 1970s records

This article is published in association with United Nations. This year marks the hottest June recorded for Western Europe and the second warmest globally, according to the latest report from a climate tracking service released on Thursday. “Heatwaves like this are what we expect to see in a changing climate,” said John Kennedy, head of climate […]
UN News Children collect water from a truck in a displaced persons camp in Gaza. (file)

Diplomats go virtual to witness Gaza displacement site up close

This article is published in association with United Nations. Representatives from 12 countries carried out a “virtual diplomatic field visit” to a displacement site in the Gaza Strip and heard from some of the residents about their pressing needs, the United Nations said on Thursday.  The UN Humanitarian Coordinator for the Occupied Palestinian Territory (OPT), Ramiz Alakbarov, and his […]
This article is brought to you in association with the European Commission.

Commission seeks feedback on commitments offered by Sanofi over possible anticompetitive conduct regarding the promotion of a flu vaccine for vulnerable patients

This article is brought to you in association with the European Commission. The European Commission invites comments on commitments offered by Sanofi to address competition concerns regarding a communication campaign that has possibly disparaged the only rival flu vaccine recommended for vulnerable patients with risk factors. The Commission’s investigation Sanofi, headquartered in France, is a multinational […]
This article is published in association with United Nations.

US-Iran war: Renewed attacks in Strait of Hormuz prompts another global energy alert

This article is published in association with United Nations. Renewed attacks on shipping in the Strait of Hormuz unsettled energy markets on Wednesday and prompted calls from the UN maritime agency, IMO, for “maximum restraint and de-escalation”. Amid reports that three merchant vessels were hit along with Iranian targets, IMO Secretary-General Arsenio Dominguez condemned “reckless attacks” […]
This article is published in association with United Nations.

When AI hurts people, who’s to blame? Global experts grapple with accountability

This article is published in association with United Nations. Who is legally responsible when Artificial Intelligence causes harm? The issue took centre stage on Tuesday – day two of the first ever UN summit on AI governance, where leading experts warned of mounting evidence of human rights violations linked to the revolutionary technology. “Across 11 Global […]
UN News Humanitarian conditions in the Gaza Strip remain dire, with families in urgent need of shelter, healthcare and food.

Occupied Palestinian Territory: Aid restrictions in Gaza, ‘senseless’ infant deaths in the West Bank

This article is published in association with United Nations. Ongoing restrictions and closures of border crossings continue to hamper delivery of critical supplies into the Gaza Strip, amid mounting concern for children there and in the West Bank, the United Nations said on Monday.  UN teams in Gaza continued to collect food and fuel from the Kerem […]
About the author Sadia Khalid is a Scientist-Physician (MBBS, MD) at Tallinn University of Technology. She is driven by a commitment to advance public health and scientific understanding. With research interests spanning molecular medicine, infectious diseases, bacteriology, hepatology, and gastroenterology, she aims to contribute meaningful, evidence-based insights that support health, safety, and community awareness.

Heat, Flood, Fire: The Climate Crisis and the Body

This article was exclusively written for The European Sting by Ms. Sadia Khalid, a Scientist-Physician (MBBS, MD) at Tallinn University of Technologye. She is affiliated with the International Federation of Medical Students Associations (IFMSA), cordial partner of The Sting. The opinions expressed in this piece belong strictly to the writer and do not necessarily reflect IFMSA’s view on […]
UN Ukraine The aftermath of a Russian missile and drone attack on Kyiv in May 2026.

Civilian dangers multiply as drones transform Ukraine’s battlefield

This article is published in association with United Nations. As drones reshape the battlefield in Ukraine, they are also creating new and increasingly complex dangers for civilians, threatening recovery efforts, agriculture and global food security long after the fighting ends. “The battlespace has become a lot deeper, a lot wider and a lot more lethal,” Paul […]
© WHO/PAHO PAHO has mobilised emergency health supplies from its Strategic Reserve in Panama following the earthquakes that struck the country on 24 June.

Venezuela’s earthquake-hit hospitals pushed to the brink as disease risk grows

This article is published in association with United Nations. A week after earthquakes tore through northern Venezuela, hospitals in La Guaira are buckling under the weight of the disaster – and the risk of disease outbreaks in shelters is rising fast. An assessment by the UN-backed Pan American Health Organization (PAHO) found that all eight health […]
Venezuela earthquake disaster: needs ‘skyrocketing’, say relief agencies

Venezuela earthquake disaster: needs ‘skyrocketing’, say relief agencies

This article is published in association with United Nations. In Venezuela, a rescue operation in La Guaira has succeeded in getting a toddler out alive from under the rubble, six days since the double-earthquake disaster. The miraculous story of the three-year-old’s rescue in the worst-hit northern region came as tens of thousands of people remained without […]
© WFP/Maxime Le Lijour Much of Gaza will need rebuilding after the war with Israel.

Despite record $100 million shortfall, Palestine relief agency still ‘a critical platform’ for Gaza recovery

This article is published in association with United Nations. The UN agency serving 5.9 million Palestine refugees, UNRWA, continues to strive to deliver on its mandate while facing an unprecedented $100 million budget shortfall, a gap it hopes to narrow during Tuesday’s pledging conference at UN Headquarters. Operating primarily on voluntary donations since its inception in the […]
© UNOCHA Sloviansk in eastern Ukraine has been regularly attacked with aerial bombs and drones.

UN details humanitarian toll of strikes on Ukrainian power industry

This article is published in association with United Nations. Missile and drone attacks killed at least a dozen civilians in Russia and Ukraine over the weekend as both countries continue to launch long-range drone strikes. Tweet URL Ukrainian authorities reported eight civilians killed and 35 others wounded in Russian attacks on the city of Dnipro on […]
Photo credit: Luis Garcia The UN System is present in La Guaira, the region most severely affected by the devastating twin earthquakes that struck Venezuela.

Venezuela earthquakes leave 680,000 children in need of assistance: UNICEF

This article is published in association with United Nations. Some 680,000 children are among the 1.8 million people in need of humanitarian assistance following the earthquakes that struck Venezuela on 24 June, the UN child rights agency UNICEF reported on Sunday as rescue efforts continue. Damage to hospitals, schools, and water systems is exacerbating the situation for affected families, […]
This article is published in association with United Nations.

Europe heatwave breaks records as UN agencies ramp up health warnings

This article is published in association with United Nations. Climate and Environment As a record-breaking heatwave grips large parts of Europe, the World Meteorological Organization (WMO), national weather services and partners are mobilising heat-health action plans for millions of people facing dangerous temperatures.  The extreme heat is also impacting economic activities, infrastructure, agriculture and ecosystems, the UN weather […]
© Unsplash/Angus Gray Ship transits through the Strait of Hormuz have dropped by over 90 per cent since the crisis escalated in late February 2026.

Stranded Hormuz seafarers begin mass evacuation operation

This article is published in association with United Nations. As the UN International Maritime Organization (IMO) released more details of its plan to evacuate more than 11,000 seafarers stranded in the Strait of Hormuz, one mariner caught up in the emergency has described the ever-present fear of coming under attack. “You don’t know when the war […]
© Unsplash/Angus Gray Ship transits through the Strait of Hormuz have dropped by over 90 per cent since the crisis escalated in late February 2026.

World News in Brief: UN launches Hormuz evacuation plan, UNICEF youth champion killed in Gaza, Lebanon ceasefire ‘largely holding’

This article is published in association with United Nations. The International Maritime Organization (IMO) will begin implementing an evacuation plan for more than 11,000 seafarers stranded in the Strait of Hormuz, the UN agency announced on Tuesday. The development follows months of hardship and distress for thousands of innocent seafarers and comes on the heels of […]
© Unsplash/Michu Đăng Quang The emissions from electricity or gasoline that power air conditioners contribute to global warming. "It's time to come clean" and do more to promote renewable energy, the UN Secretary-General told the London Climate Action Week.

Climate crisis: UN chief lays out solutions blueprint for clean energy transition

This article is published in association with United Nations. As a deadly heatwave continued to grip Europe on Tuesday, UN Secretary-General António Guterres issued an impassioned appeal for more ambitious global action on climate change caused by fossil fuels, to prevent irreversible damage. In a major keynote speech at London Climate Action Week, the UN chief […]

Libya’s political process regains momentum, but window for action is narrowing, UN envoy warns

This article is published in association with United Nations. Libya has been mired in political dysfunction since the collapse of Muammar Gaddafi’s regime in 2011, which shattered State institutions and triggered recurring struggles over legitimacy and power.  The country’s current stalemate pits the UN-recognised Government of National Unity in the capital Tripoli against eastern-based authorities backed […]

Why don't you drop your comment here?

Go back up

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

Discover more from The European Sting - Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology - europeansting.com

Subscribe now to keep reading and get access to the full archive.

Continue reading

The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology – europeansting.com