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Luxury

Why did Gucci’s Milan manufacturing facility just get raided? European Union antitrust regulators inspected the Kering luxury brand’s site as part of an investigation into fashion companies

STORYReuters
Gucci at The Gardens Mall in Malaysia. Photo: Gucci
Gucci at The Gardens Mall in Malaysia. Photo: Gucci
Gucci

  • European Commission agents and Italian tax police inspected a Gucci site in Milan connected with the manufacture of handbags, travel items and leather goods
  • Companies found guilty of breaching EU rules can be fined for as much as 10 per cent of their global turnover; Pierre Cardin and German clothing maker Ahlers were also investigated last year

European Union antitrust regulators have started inspecting a facility of luxury goods company Gucci as part of an EU investigation spanning several countries, Gucci’s French owner Kering said on Wednesday, confirming a Reuters report.

“The group is fully cooperating with the (European) Commission in the context of this investigation,” Kering said in a statement.

A logo seen in a shop window of a Gucci retail store at the State Department Store GUM at the Red Square in Moscow, Russia, on February 14. Photo: EPA-EFE
A logo seen in a shop window of a Gucci retail store at the State Department Store GUM at the Red Square in Moscow, Russia, on February 14. Photo: EPA-EFE
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Reuters had previously reported that Italian tax police and European Commission agents on Tuesday inspected a Gucci site in Milan connected with the manufacture of travel items, handbags and other leather goods, according to two sources with knowledge of the matter.

Gucci and the European Commission declined to comment on Wednesday.

One of the sources said other fashion companies outside the Kering group had been targeted by similar inspections.

France’s second-largest luxury group Kering saw profit climb 14 percent to 3.6 billion euros last year despite a drop in fourth quarter earnings at its flagship Gucci, the company said on February 15. Photo: AFP
France’s second-largest luxury group Kering saw profit climb 14 percent to 3.6 billion euros last year despite a drop in fourth quarter earnings at its flagship Gucci, the company said on February 15. Photo: AFP

The European Commission said on Tuesday that antitrust regulators had raided companies in the fashion sector in several EU countries.

The Commission, which acts as the competition enforcer in the 27-country EU, did not name the companies or the countries, in line with its policy. It also sent requests for information to companies active in the same sector.

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