Published: Чт, Декабря 07, 2017
World | By Paul Elliott

Luxury manufacturers can block retailers from selling on Amazon

Luxury manufacturers can block retailers from selling on Amazon

The European Court of Justice (ECJ) ruled on December 6 that such a ban did not go beyond what is necessary "to preserve the luxury image of the goods" and did not break EU competition rules by restricting customer choice.

European competition law can not stop a luxury retailer that does not want its wares being trafficked via the online retail giant Amazon, the EU's highest court ruled Wednesday. Luxury owners have long waged a battle against what they see as free riders cashing in on their exclusivity and branding.

"The prohibition at issue in the main proceedings enables the supplier of luxury goods to check that the goods will be sold online in an environment that corresponds to the qualitative conditions that it has agreed with its authorized distributors", the ruling states.

Beauty company Coty said it brought the case to protect the cachet of its brands like Chloe and Marc Jacobs.

Coty's German subsidiary and retailer, Parfumerie Akzente, had been selling Coty cosmetics on Amazon and other online sites, despite its parent asking it to stop.

"It is a clear ruling for the protection of luxury brands' image, the defence of our teams' work and the protection of consumers' rights and information", Coty said.

"A selective distribution system for luxury goods, designed primarily to preserve the luxury image of those goods, does not breach the prohibition of agreements, decisions and concerted practices laid down in European Union law", it said, adding that the system must not discriminate against particular resellers.

Earlier decisions by German regulators have found against big brands such as Adidas and Asics in similar disputes over online sales restrictions.

The case is C-230/15 Coty Germany.

Like this: