The Italian competition authority (AGCM) said Wednesday it had opened an investigation into luxury houses Armani and Dior for alleged exploitation of workers at Chinese subcontractors.

Milan prosecutors have placed several Italian-based Chinese companies - producing luxury goods for Dior and Armani - under judicial administration, accusing them of systematically mistreating their employees.

In a statement, the AGCM said its investigation focused on certain companies in the Armani Group and the Dior Group (LVMH), adding that it had acted in response to the measures taken by the Italian judiciary.

"The companies (Armani and Dior) may have made false declarations in terms of ethics and social responsibility, particularly with regard to working conditions and compliance with the law at their suppliers," the competition watchdog said.

They have been placed under judicial administration "for possible illicit behavior in the promotion and sale of clothing articles and accessories, in violation of the (Italian) consumer code", he added.

Armani and LVMH did not immediately respond to requests for comment.

(Reported by Alessandro Parodi, edited by Zhifan Liu)