Guess will be the focus of a formal investigation by the EU Commission as suspicions emerge that brand prevented certain retailers from selling its products across borders.
According to Reuters, guess has been accused of banning retailers from distributing their products across European borders, which would breach the EU regulations of free movement of goods across the single market.
READ MORE: Guess opens largest UK store outside London
The probe was reportedly sparked following a two-year EU investigation into business the ecommerce sector.
This report found that one in 10 retailers complained of restrictions on cross border trade in their distribution agreements.
“We are going to investigate Guess’s practices further to ensure that it is playing by the rules and not preventing consumers from buying products across borders,” competition commissioner Margrethe Vestager told Reuters.