EU Investigates De Beers-LVMH Pact

In what could be a blow to De Beers' retail hopes, the European Commission is investigating the proposed venture between the company and LVMH. In a statement, the Commission said the request was the result of "serious doubts whether [the venture] is compatible with the competition rules in the European single market." The Commission has four months to investigate and decide whether the new venture should proceed. The EC identified two concerns: Because of its knowledge of sightholders' operations, De Beers could direct its best diamonds toward the new venture and cut out those who sell to competitors. By launching a retail brand, De Beers would increase demand for its diamonds and "therefore raise barriers that other competitors have to overcome in order to compete effectively." The request was considered bad news for the venture, as it increases
JCK PRO

This content is exclusive to JCK Pro subscribers. Subscribe now to access this and much more with discount code GOPRO21 for $199 for an entire year of access (reg. $249).

SUBSCRIBE TO CONTINUE

Already a JCK Pro? Log in

A JCK Pro subscription is your all-access pass to people and resources on the
cutting edge of the retail jewelry industry, from the industry authority you
know and trust

Learn about the Perks of JCK Pro

Log Out

Are you sure you want to log out?

CancelLog out