Clothing retailers Hugo Boss, Kaufmann, and Ginsborg have concluded antitrust cases for unlawfully exchanging confidential information. The cases have drawn international interest as they highlight a fundamental problem where a company, such as Hugo Boss, shared information with companies it both supplies and competes with.

The cases emphasize the importance for suppliers to be cautious about the information they share with their retailers, especially when they also sell directly to end consumers. This serves as a relevant reminder for companies that engage in both wholesale and direct sales to end customers, for example, through their own websites.

Businesses that have violated competition rules may benefit from cooperating with authorities, potentially reducing penalties and mitigating significant damages.

The antitrust cases involved two scenarios: one where Hugo Boss exchanged confidential information with Kaufmann and another where it shared such information with Ginsborg. The exchanged information included details on pricing strategies, sales prices, discounts, upcoming sales, and campaigns.

The cases have been part of the European Commission's work on developing guidelines for vertical restraints from 2022, providing insights on applying competition rules to agreements between retailers and suppliers. These guidelines offer clarity on the types of information companies can and cannot exchange when competing in the end consumer market while maintaining a supplier relationship.

In 2020, the Competition Council ruled that the clothing retailers had breached competition law. Subsequently, both the Competition Appeals Tribunal and the Maritime and Commercial Court affirmed the illegality of the information exchange.

Ginsborg and two of its senior employees have been granted non-prosecution by the National Unit for Special Crimes (NSK) after meeting the conditions. Ginsborg had applied for leniency in 2018, providing information that helped authorities uncover a cartel violation. The company has since cooperated with authorities on the case.

The antitrust cases predate the 2021 amendment to competition law, where fines for companies transitioned to civil penalties. Therefore, the National Unit for Special Crimes (NSK) handled the fine cases and non-prosecution.