This site would like to set some non-essential temporary cookies. Some cookies we use are essential to make our site work.
Others such as Google Analytics help us to improve the site or provide additional but non-essential features to you.
No behavioural or tracking cookies are used.
To change your consent settings, read about the cookies we set and your privacy, please see our Privacy Policy

Digital Business Lawyer

Final decision in Coty upholds ban on distributors selling on third party platforms

The European Court of Justice (‘ECJ’) handed down its long awaited judgment in the Coty case1 on 6 December 2017. The case raised the question of whether it is permissible under competition law for a supplier of luxury goods, which operates a selective distribution system, to prohibit its authorised distributors from selling on third party online platforms, such as Amazon and eBay. National courts and national competition authorities have adopted conflicting positions on prohibitions of this kind and it was hoped that the judgment would provide clarity in this area to allow a consistent approach in future cases. In July, Advocate General Wahl issued his Opinion, setting out his view that such a prohibition is permissible and does not, in principle, go beyond what is necessary to preserve the luxury image of the goods. The ECJ’s judgment confirms that it agrees with Wahl’s Opinion and will be welcomed by suppliers of luxury goods. The judgment also provides more general support for a permissive approach under competition law for selective distribution systems, as Paul Stone, Partner at Charles Russell Speechlys, explains.

Sign up for a free trial for a week’s access to the entire latest issue of the journal
You must be logged in and have an active full subscription to view full articles.
Log in now
If you are not already a subscriber, take a subscription for full access to our entire online archives.

Search Publication Archives

Our publication archives contain all of our articles, dating back to 1999.
Can’t find what you are looking for?
Try an Advanced Search

Log in to digital business lawyer
Subscribe to digital business lawyer
Register for a Free Trial to digital business lawyer
digital business lawyer Pricing

Social Media

Follow digital business lawyer on Twitterdigital business lawyer on LinkedIndigital business lawyer RSS Feed