Luxury goods-makers win fight to block retailers from selling on Amazon

Coty can impose online sales ban on luxury products

Luxury Brands Win a Crucial Victory in Battle Against Amazon Distribution

Coty wanted to ban an authorized distributor from selling its products on in a case pending at a Frankfurt court, which requested a ruling from European Union judges.

It brought proceedings to stop these distributors selling its products on e-marketplace platforms, specifically, and the European Court has agreed that it is within the rights of luxury goods brands to stipulate which retail channels their products are sold through.

Coty, owner of brands such as Marc Jacobs and Calvin Klein raise a case on this issue.

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

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Europe's top court has passed a law restricting distributors from selling brands online without permissions. Therefore, luxury goods manufacturers will be able to prevent their products from being sold on third party websites by distributors.

The court said Coty's effort to limit distributors "is appropriate to preserve the luxury image of those goods", adding that it "does not appear to go beyond what is necessary".

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

"Our preliminary view is that such manufacturers have not received carte blanche to impose blanket bans on selling via platforms", the office's president, Andreas Mundt, said in a statement. However the judgment may have implications for selective distribution systems for other types of goods, where selective distribution is justified under the competition rules because the nature of the goods requires the use of such a system. "Germany will have to align with European case law and accept this kind of restrictions unless it contradicts some conditions in competition law", he said.

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