The french antitrust regulators took action to control the unrealisticly high prices of top luxury goods and perfume companies by issueing fines. The Competition Council explained that a certain group of companies had set up a price agreement to "artificially inflate prices" and threaten those who were unwilling to follow suit.
According to the Herald Tribune, yesterday, the companies that were fined were Sephora of LVMH (Louis Vuitton Moet Hennessy) group by 9.4 million, L'Oreal by 4.1 million, Chanel by 3 million, Parfums Christian Dior by 2.2 million, Yves Saint-Laurent Parfums by 1.8 million, Guerlain by 1.7 million and many others.
The brands in order to defend their case justified their high leveled prices as a means to keep their good quality and luxurious image in tact. Will these fines rationalize luxury suppliers? I surely doubt so... but it's a good start!
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