Greece’s competition authority has issued a substantial financial penalty to a major distributor of school supplies and lifestyle apparel over anti-competitive e-commerce restrictions. The Plenary Session of the Competition Commission unanimously handed down a fine totaling €954,485 to VF Hellas Clothing Ltd. for implementing contractual terms that unlawfully restricted retailers from effectively utilizing internet sales channels.
VF Hellas operates as a subsidiary of the American apparel conglomerate VF Corporation. In the Greek market, the company manages the import, manufacture, and wholesale distribution of prominent global brands, including Vans, Eastpak, and The North Face. The investigation into the company’s business model covered both the consumer apparel and footwear sectors, as well as the seasonal market for school supplies like backpacks and lunch bags.
The regulatory action followed an ex officio investigation and a series of unannounced, on-site inspections conducted by the Directorate General for Competition. Investigators discovered that VF Hellas had embedded specific restrictive clauses into its standard retail contracts. These terms effectively dictated how third-party retailers could market and sell branded products online, targeting entire product lines under specific brand names.
The competition authority identified two primary infractions that heavily restricted digital commerce. First, VF Hellas enforced a blanket ban preventing its retailers from listing products on price comparison websites. Second, the company prohibited retailers from utilizing search engine advertising services, explicitly barring them from bidding on terms through platforms like Google Ads.
Under European Union competition law, specifically Article 4(e) of Regulation (EU) 720/2022, these types of digital marketing prohibitions are classified as hardcore restrictions. By stripping retailers of the ability to advertise on search engines or appear on comparison platforms, the company limited the ability of everyday consumers to search for competitive pricing, thereby stifling healthy market competition.
Facing a mounting body of evidence collected during the raids, VF Hellas opted to bypass a protracted legal battle. The company submitted a formal request to enter the Competition Commission’s dispute settlement procedure. By acknowledging the infractions and agreeing to a settlement proposal, VF Hellas qualified for a reduced fine, bringing a definitive end to the antitrust dispute.
