US Brand Company Guess Fined $45 Million for Blocking Cross-Border Sales

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Clothing brand Guess is fined $45 Million million from the European Commission for imposing advertising and sales restrictions on retailers.

 

The American company tried to prevent EU consumers from buying items in another Member State and kept the prices artificially high.

Guess forbade shopkeepers to advertise online and sell across the border. According to Brussels, such distribution agreements are a case of geo-blocking and contrary to European competition rules.

The fine is half of what the company would generally have to pay. The commission reduced the amount because the company confessed many other advertising practices that also conflict with EU rules.

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