On Tuesday 6 June, the European Commission decided to open a formal investigation procedure into possible anti-competitive practices of the clothing manufacturer and reseller, Guess.
Guess, which designs and distributes clothing and accessories, grants licenses to retailers and wholesalers allowing them to sell the brand's clothing.
According to the institution's information, the company may actually be using agreements and distribution practices that prevent retailers from selling the brand's products in member states other than their own. These agreements therefore make it impossible to sell on to consumers or retailers established in the territory of member states other than the one in which the acquirer is located.
The Commission reiterates that although companies are often free to choose the distribution system that best suits their needs, this system must be compatible with EU rules on competition. Under these rules, consumers must be able to purchase products from any retailer accredited by a manufacturer, including in member states other than their own.
The Commission will therefore consider whether the above-mentioned practices are in breach of article 101 of the Treaty on the Functioning of the European Union (TFEU), which prohibits agreements between companies that block, limit or distort competition within the single market of the European Union.
Readers may recall that in its final report on the sectorial investigation into electronic commerce, which was presented on 10 May of this year, the Commission revealed that more than one in ten retailers it spoke to had had cross-border sales restrictions imposed upon them by distribution agreements. (Original version in French by Lucas Tripoteau)