Pierre Cardin partner loses bid to overturn EU penalty
The penalty stems from findings that the company participated in anti-competitive arrangements that restricted sales of branded products across national borders within the EU, according to a statement issued in connection with the case
A German fashion manufacturer tied to the Pierre Cardin brand has been unsuccessful in its attempt to overturn a multimillion-euro antitrust penalty imposed by European Union regulators, after one of the bloc’s top courts sided with the European Commission.
The Luxembourg-based General Court ruled on Wednesday that the Commission had correctly calculated the €3.5 million ($4.12 million) fine levied against Ahlers, a major producer and distributor of Pierre Cardin-branded clothing in Europe. The penalty stems from findings that the company participated in anti-competitive arrangements that restricted sales of branded products across national borders within the EU, according to a statement issued in connection with the case.
European competition regulators concluded that the conduct took place over more than a decade, from 2008 through 2021. Per a statement from EU authorities, the arrangements limited the ability of retailers and distributors to sell Pierre Cardin merchandise freely across member states, undermining competition in the single market.
In its appeal, Ahlers challenged the way the Commission determined the financial penalty, arguing that the turnover of its subsidiary, Ahlers AG, should not have been included because the unit’s operations had been transferred to an investor during insolvency proceedings in 2023, according to court documents.
The judges rejected that position and affirmed the Commission’s approach.
The Commission was justified in taking into account the consolidated turnover of the applicant as a parent company, which therefore included that of its subsidiary, Ahlers AG, between December 1, 2022 and July 15, 2023, judges said.
The court added: Indeed, during the period of the infringement and until the latter date, the applicant formed a single economic unit with Ahlers AG, over which it exercised decisive influence.
EU competition rules allow fines of up to 10% of a company’s worldwide annual revenue for violations of antitrust law. According to a statement tied to the ruling, Ahlers retains the right to seek a further appeal before the Court of Justice of the European Union.