German clothing maker Ahlers has lost its legal challenge against a €3.5m EU antitrust fine linked to the sale of Pierre Cardin-branded clothing across Europe.
The European Union’s General Court on Wednesday backed the European Commission’s calculation of the penalty, which was imposed on Ahlers in 2024 after regulators found it had taken part in anti-competitive agreements restricting cross-border sales of Pierre Cardin products.
Ahlers, the largest licensee of French fashion house Pierre Cardin, was fined as part of a wider €5.7m penalty handed to both companies after the Commission concluded they had restricted retailers’ ability to sell Pierre Cardin-branded clothing across the European Economic Area between 2008 and 2021.
The Commission said the arrangements were designed to protect Ahlers from competition in the countries covered by its licence agreement with Pierre Cardin, including by preventing other licensees and their customers from selling into those territories.
Ahlers had challenged the fine at the Luxembourg-based General Court, arguing that the turnover of its subsidiary, Ahlers AG, should not have been included in the Commission’s calculation because the subsidiary’s business activities had been transferred to an investor in July 2023 as part of insolvency proceedings.
However, judges rejected the argument, ruling that the Commission was entitled to take into account the consolidated turnover of Ahlers as the parent company, including Ahlers AG, between December 2022 and July 2023.
The court said that during the infringement period, and until the subsidiary’s transfer, Ahlers and Ahlers AG formed a “single economic unit”, with the parent company exercising decisive influence over the business.
The ruling marks a win for EU competition regulators, which have been taking a tougher stance on brand licensing and distribution agreements that prevent retailers from sourcing products across borders.
The original fine centred on restrictions that the Commission said limited both online and offline sales of Pierre Cardin-branded clothing outside allocated territories, effectively fragmenting the European single market and restricting consumer access to lower-priced goods.
Ahlers can still appeal the ruling to the Court of Justice of the European Union, the bloc’s highest court.
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