An integrated CEE law firm with worldwide activities.

In the ECJ´s ruling of 6 December 2017, the Court has ruled that selective distribution systems that aim to preserve the luxury image of products do not violate European competition law by restricting third-party online platform sales, and confirmed that platform bans are not hardcore restrictions of competition. The Court ruled that online platform bans can be appropriate in the context of a selective distribution system provided such bans do not go beyond what is necessary to preserve the luxury image of products. In contrast, the ECJ also reiterated that an absolute online sales ban imposed on retailers is not legal unless objectively justified. The Coty judgment ends a period of uncertainty over the legality of online platform bans under EU law, which has been the subject of contrasting interpretations by the national competition authorities and courts, and undoubtedly provides more clarity to luxury brand owners on the legality of their distribution practices.

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