Luxury brands can now block sales on Amazon & eBay

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

Luxury product manufactures can block retailers from selling their merchandise on online marketplaces like Amazon.

Many luxury brands have taken a dim view of Amazon for a long time-they want to be able to maintain their luxury image by only selling their products through high-end channels, and Amazon isn't that.

"Such a prohibition is appropriate and does not, in principle, go beyond what is necessary to preserve the luxury image of the goods".

Manufacturers of goods that aren't luxury brands "still have no carte blanche to sweepingly limit their distributors' use of sales platforms, according to our assessment", Mundt added.

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"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.

However, opponents have warned that this decision would hurt small dealers and their business.

Parfumerie Akzente said it meets the terms for online sales set by luxury owners.

Needless to say, this ruling has significant and broader competitive ramifications for the DF&TR industry. In yesterday's judgment, the Court repeats it earlier case law that selective distribution systems are compatible with the European Union cartel prohibition if resellers are chosen on the basis of objective criteria of a qualitative nature that are laid down uniformly and not applied in a discriminatory fashion and that do not go beyond what is necessary.

The decision out of Luxembourg comes in response to contractual proceedings that the luxury retailer Coty Prestige initiated in Germany against one of its authorized retailers.

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