Galliano, 50, has been chief designer at Christian Dior since 1996 and allegedly came to blows after spewing anti-Semitic remarks at a couple at a cafe in the traditionally Jewish neighborhood.
Britain's The Daily Telegraph said Saturday that Galliano had reportedly been drinking heavily prior to the incident and was the only one arrested by the gendarmes.
Galliano is an A-list designer who has worked with the cream of the modeling world and was a particular favorite of Princess Diana.
Police said charges were pending in the incident. Galliano was booked and released.