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Guess Probed by EU Amid Clampdown on Cross-Border Sales

The European Commission will examine whether Guess is violating EU rules that allow consumers to shop around for a better deal.
Guess store | Source: Shutterstock
By
  • Bloomberg

PARIS, France — Guess? Inc. faces a formal European Union antitrust investigation over suspicions the clothing manufacturer and retailer may be thwarting cross-border sales to potential consumers.

The European Commission will examine Guess’ distribution agreements and practices to determine whether they violate EU competition rules that allow consumers in the bloc to purchase from any retailer authorised by a manufacturer, including across national borders.

“One of the key benefits of the EU’s single market is that consumers can shop around for a better deal,” EU Competition Commissioner Margrethe Vestager said Tuesday in an emailed statement. Officials will check Guess is “playing by the rules and not preventing consumers from buying products across borders.”

The EU said that while the Guess probe is separate from a sweeping probe into online sales inquiry finalised last month, the case “follows up” on one of the issues identified. The digital economy is a focus for Vestager, who is investigating Alphabet Inc.’s Google over an online shopping search tool, phone software and advertising.

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Los Angeles-based Guess didn’t immediately respond to requests for comment.

Vestager is also probing Hollywood studios over restrictive contracts with pay-TV provider Sky Plc that may block sales outside the UK and has also cited concerns over how companies increasingly collect and use vast amounts of data about consumer habits.

By Gaspard Sebag; editors: Anthony Aarons, Peter Chapman, Eric Pfanner.

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