Ahlers Loses Legal Challenge Over €3.5 Million EU Antitrust Fine Related to Pierre Cardin
German Clothing Maker Ahlers Faces Uphill Legal Battle in EU Antitrust Case
By Foo Yun Chee
Background of the Antitrust Fine
BRUSSELS, May 6 (Reuters) - German clothing maker Ahlers, the largest licensee of French fashion house Pierre Cardin, on Wednesday lost its fight against a 3.5 million euro ($4.12 million) EU antitrust fine after Europe's second-highest court backed regulators' calculations.
The European Commission, which acts as the EU competition enforcer, handed out the fine to Ahlers two years ago for illegally blocking cross-border sales of Pierre Cardin-branded products in Europe via anti-competitive deals between 2008 and 2021.
Arguments Presented by Ahlers
The maximum fine under EU antitrust rules is 10% of a company's global annual turnover but Ahlers argued at the Luxembourg-based General Court that its subsidiary Ahlers AG should not have been included in the Commission's calculation as its business activities had been transferred to an investor in July 2023 as part of insolvency proceedings.
Court's Ruling and Justification
"The Commission was justified in taking into account the consolidated turnover of the applicant as a parent company, which therefore included that of its subsidiary, Ahlers AG, between 1 December 2022 and 15 July 2023," judges said.
"Indeed, during the period of the infringement and until the latter date, the applicant formed a single economic unit with Ahlers AG, over which it exercised decisive influence," they said.
Next Steps and Case Details
Ahlers can appeal to the Court of Justice, Europe's highest.
The case is T-87/25 Westfälisches Textilwerk Adolf Ahlers Stiftung & Co. KG against European Commission.
Additional Information
($1 = 0.8503 euros)
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
