EU ends antitrust probe into fashion designers
Newswire
Brussels: The European Union’s antitrust regulators have announced the termination of a two-year-long investigation into a group of fashion designers, citing “priority reasons,” the European Commission revealed this week.
The competition watchdog had initiated the investigation in May 2022, conducting raids on several fashion companies amid concerns of potential participation in a cartel to manipulate prices. While the specific companies were not disclosed, the probe was prompted by suspicions raised in an open letter circulated in 2020 by certain fashion designers advocating for sweeping changes within the industry to enhance environmental and social sustainability, sources with direct knowledge of the matter disclosed to Reuters.
The letter, endorsed by numerous renowned entities worldwide including Dries Van Noten, Thom Browne, Proenza Schouler, Lane Crawford, Mary Katrantzou, Gabriela Hearst, Altuzarra, and Missoni Group, underscored the necessity for fundamental shifts in sales periods and discount practices.
“The European Commission has decided to close its preliminary investigation into this matter for priority reasons. The closure is not a finding of compliance or non-compliance of the conduct in question with EU competition rules,” a spokesperson for the Commission stated.
However, the Commission emphasized the possibility of initiating a new investigation into the same conduct should fresh evidence emerge warranting further scrutiny. Companies found guilty of antitrust violations risk fines of up to 10 percent of their global annual turnover.
Austal, the Australian shipbuilder, finds itself at a crossroads as it contemplates an unsolicited bid from South Korean conglomerate Hanwha worth A$1.02 billion ($662 million). While confirming the receipt of the bid following media reports, Austal expressed reservations regarding the approval process, particularly concerning its critical role as a partner to the Australian and US navies.
The company’s apprehension stems from its recent commitment to a Strategic Shipbuilding Agreement with the Australian Department of Defence, emphasizing the importance of keeping naval shipbuilding within the country. This memorandum of understanding (MOU) underscores Austal’s pivotal position as a national asset in Australia’s defense infrastructure.
In response to Hanwha’s bid, the South Korean entity asserted that Austal’s sale should be restricted to companies within the AUKUS alliance countries (US-UK-Australia). Hanwha justified its eligibility based on South Korea’s close military cooperation ties with both the US and Australia, citing numerous joint exercises as evidence of its strategic alignment.
Despite the initial rejection of Hanwha’s bid by Austal’s board, the company remains open to further engagement if Hanwha can provide stronger assurances regarding regulatory approvals. David Kim, executive vice president at Hanwha, expressed confidence in gaining approval, countering concerns by highlighting Hanwha’s successful track record of investment in Australia’s defense industrial base.
Kim pointed to Hanwha’s prior approvals from the Foreign Investment Review Board (FIRB) for investments in Australia, underscoring its commitment to the country’s defense sector. However, regulatory filings revealed that ongoing discussions between Hanwha and Austal’s management were currently stalled, despite Hanwha’s efforts to engage further.
