July 31, 2017
On 26 July 2017, in the matter of Coty Germany GmbH v Parfümerie Akzente GmbH, at the European Court of Justice, Advocate General Wahl, stated a supplier of luxury goods may prohibit its authorised retailers from selling its products on third-party platforms such as Amazon or eBay.
Coty Germany is a luxury cosmetic brand, who preserves their image by selling its products through a selective distribution network via their authorised retailers. Parfümerie Akzente (an authorised retailer) began selling the products online via Amazon.
It is established case law that by their very nature, luxury goods may require a selective distribution system to preserve the quality of their goods. Selective distribution networks are compatible with EU competition if they comply with the following criteria:
However, we are now eagerly awaiting the court of appeal judgment in this matter.
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