The Impact of the New Vertical Block Exemption Regulation in the Fashion and Luxury Sector

September 2022

Abstract

Confronted with major challenges and developments in the retail sector such as the Covid-19 pandemic and an increased importance of the online sales channel, fashion and luxury brands naturally aim to make their distribution system more efficient and to boost their trademark by entering into a variety of vertical agreements with their distributors and retailers. Such vertical agreements may expose them to the scrutiny of the European Commission (hereinafter, “Commission”) and national competition authorities. The assessment of whether such agreements are compliant with competition law rules has, therefore, become increasingly important for luxury brands.

Authors

Francesco Carloni

Partner, K&l Gates, Belgium

Francesco Carloni is a partner in the firm's Brussels and Milan offices where he is a member of the antitrust, competition & trade regulation practice group.Francesco has extensive experience in notifying mergers and joint ventures with the European Commission and national competition authorities in Europe,coordinating the notification of international transactions globally, and advising on all aspects of antitrust law, including vertical agreements, anti-cartel enforcement, collaborative arrangements,unilateral conduct, e-commerce, EU sector inquiries, public consultations, and state aid. He has been involved in some of the most high-profile and complex merger control cases, including in-depth (Phase 2) investigations and remedies.He offers compliance training and develops customized compliance programs adapted to clients' specific risk profiles. He has extensive experience in the fashion and luxury sector where he represents a number of the most iconic brands globally.He advises leading corporations in a variety of sectors including fashion and luxury, pharmaceutical, IT, digital maps, telecommunications, aviation, chemicals, liner shipping, food, dairy and automotive industries. A New York and Italian-qualified lawyer, Francesco graduated from the University of Rome 'La Sapienza' and received two LLMs from the College of Europe, Bruges, and Georgetown University Law Center, where he was a Fulbright scholar.

Luca Chiama

Group Legal Director, Prada SpA, Italy

Luca Chiama - Legal Director at Prada Group. He joined Prada Spa in 2008 as Head of the Legal Department, Industrial Area Legal Director and served as Chairman of the Industrial Compliance Committee from 2010 to 2017. Before it, he worked at Tiscali Group for about 8 years as Head of the Legal and Corporate Affairs Department of Tiscali Italia Spa. In over 20 years of experience, he has gained significant knowledge in the regulatory issues of the sector as well as in the field of consumer rights and distribution networks.

Companies

K&l Gates

K&L Gates is one of the largest law firms in the world with more than 45 offices located in key capital cities and world commercial and financial centres spanning five continents. Its many offices operate as one firm, offering clients local market knowledge and access to both national and international capabilities.

Prada SpA

Pioneer of a dialogue with contemporary society across diverse cultural spheres and an influential leader in luxury fashion, Prada Group founds its identity on essential values such creative independence, transformation and sustainable development, offering its brands a shared vision to interpret and express their spirit. The Group owns some of the world’s most prestigious luxury brands, Prada, Miu Miu, Church's, Car Shoe, the historic Pasticceria Marchesi and Luna Rossa, and works constantly to enhance their value by increasing their visibility and appeal. The Group designs, manufactures and distributes ready-to-wear collections, leather goods and footwear in more than 70 countries through a network of 627 stores (at June 30th 2022) as well as e-commerce channels, selected e-tailers and department stores around the world. The Group, which also operates in the eyewear and fragrances sector through licensing agreements, has 23 owned factories and more than thirteen thousand employees.