The European Commission has taken a significant step by sending a Statement of Objections to Pierre Cardin, a renowned French fashion house, and its largest licensee, Ahlers, a German clothing manufacturer. The Commission's preliminary view suggests that both companies may have breached EU antitrust regulations by imposing restrictions on cross-border sales of Pierre Cardin-licensed clothing and limiting sales to specific customers.

For over a decade, the Commission has raised concerns that Pierre Cardin and Ahlers engaged in anticompetitive agreements that hindered other licensees and their customers from selling Pierre Cardin-licensed products, both online and offline. These restrictions were reportedly aimed at protecting Ahlers' territorial rights within the European Economic Area (EEA), particularly against low-price retailers that could offer more competitive pricing.

If the Commission's findings are confirmed, the actions of Pierre Cardin and Ahlers would constitute a violation of Article 101 of the Treaty on the Functioning of the European Union (TFEU) and Article 53 of the EEA Agreement, which prohibit agreements that restrict competition within the EU's Single Market.

The issuance of a Statement of Objections marks a formal stage in the Commission's investigation into suspected antitrust violations. It allows the companies to review the evidence against them, respond in writing, and request an oral hearing to present their defense. However, this step does not imply any predetermined outcome of the investigation.

Should the Commission find sufficient evidence of wrongdoing after the companies have defended themselves, it has the authority to prohibit the conduct and impose fines of up to 10% of the companies' annual global turnover. The timeline for concluding the investigation remains uncertain, as it depends on various factors, including the complexity of the case and the level of cooperation from the involved parties.