Top EU court to weigh in on luxury brands’ attempts to ban online sales
Online purchasing on Collector Square.
BRUSSELS, March 29 (Reuters) – Europe’s top court will begin a landmark case on Thursday which could determine whether luxury goods companies can stop retailers from selling their products via marketplaces such as Amazon or eBay.
Online marketplaces say blanket bans are anti-competitive
Mass market products retailers also try to curb online sales
European Commission wants more cross-border online sales
Owners of luxury brands have been fighting with online retailers for the last decade, arguing that they should have the right to choose who distributes their products to protect their luxury image and exclusivity.
Online platforms dispute this, saying that such restrictive distribution deals are anti-competitive and hurt consumers. The dispute is in the spotlight now because of the European Commission’s push for more cross-border online sales to boost growth and jobs, and catch up with the United States and Asia.
The case before the Luxembourg-based Court of Justice of the European Union (ECJ) concerns German company Coty, a subsidiary of U.S. beauty products maker Coty Inc, which wants to stop a retailer from selling its goods on online marketplaces such as Amazon.
Coty says this breaches its agreement with the retailer which prohibits the sale of its products via third parties. The case originally went to a court in Germany which subsequently asked the ECJ for guidance.
The EU court’s ruling will be crucial be...
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