Hugo Boss fined DKK 12 million (€ 1,608,650) for infringing the competition rules

Hugo Boss has accepted to pay a fine of DKK 12 million for infringing the competition rules by exchanging information about prices with its two competitors, who also sold products from Hugo Boss. Furthermore, two members of the management have each paid fines of DKK 120,000 for their involvement in the infringement.  

Hugo Boss unlawfully exchanged information with its two retailers Kaufmann and Ginsborg regarding prices, discounts, and/or quantities for future sales. Hugo Boss is a supplier to both clothing retailers but also competes with them by selling Hugo Boss products in its own stores.

The illegal information exchange between Hugo Boss and Kaufmann occurred from January 2014 to November 2017. The illegal information exchange between Hugo Boss and Ginsborg occurred from December 2014 to April 2018.

In determining the fines, consideration has been taken to the fact that this is a serious infringement of the competition rules, as well as to the duration of the infringement, and, in particular, the company’s group turnover. As a mitigating circumstance, it has been noted that Hugo Boss Nordic has accepted to pay the fine.

In 2020, the Danish Competition Council ruled that several clothing retailers had violated the competition rules. Since then, both the Competition Appeals Tribunal and the Maritime and Commercial Court have confirmed that the information exchange was illegal.

Kaufmann has previously paid a fine of DKK 6 million in the same case complex.

The case started before the amendment of the Competition Act in 2021, since when fines to companies have been civil. Therefore, it is the National Special Crime Unit that has handled the case in criminal proceedings.