Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

L'Oreal To Appeal Greek Fine Over Price Fixing

The French company is to appeal its €2.6 million fine after six companies, including Estée Lauder, were fined by Greece's anti-trust commission for agreeing on retail discounts.
Source: Flickr Mckrista1976
By
  • Reuters

PARIS, France — L'Oreal said on Thursday it would appeal a €2.6 million ($3.05 million) fine imposed by Greece's competition authority, which ruled that the French cosmetics company and several of its rivals were fixing prices.

The local beauty products business of France's Christian Dior — part of luxury goods group LVMH — was also fined just under €1.8 million ($2.1 million), while US-based Estée Lauder got the biggest fine, at €5.4 million ($6.3 million).

Greece's anti-trust commission fined six cosmetics companies a total of €18.7 million ($21.9 million) after investigating allegations that luxury cosmetics wholesalers were agreeing on the discounts to be applied to their products when resold in shops and indirectly fixing prices as a result. Three Greek companies were included in the six.

"L'Oreal Hellas denies any accusations of unlawful competition," the company said. L'Oreal, which owns brands such as Lancome and Kiehl's, is the world's biggest cosmetics and beauty products company.

ADVERTISEMENT

Christian Dior could not immediately be reached for comment. Estée Lauder said in a statement it was "reviewing the authority's decision with the intention to appeal."

Greece's Sarantis, which was slapped with a €1.9 million ($2.2 million) fine, had also said on Wednesday that it would appeal the ruling and disputed the size of the fine.

"There had never been any kind of agreement between the distributors of luxury cosmetics in Greece with the aim to set cosmetics sale prices," Sarantis said in a statement. Sarantis also has a 49 percent stake in a joint venture with Estée Lauder in Greece.

By Pascale Denis and Sarah White; Editor: Jane Merriman

In This Article
Topics

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections