Luxury manufacturers can block retailers from selling on Amazon

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As long as luxury goods brands apply any ban on specific retail platforms uniformly in a contractual clause across its authorised distributors, the court finds such a clause is reasonable.

Opponents have warned that restricting sales will hurt smaller businesses.

In a landmark decision the European Court of Justice (ECJ) has ruled that it is "appropriate" for luxurygoods brand owners to take action against distributors selling on any of their products for resale by third-party online retailers - such as Amazon or others - without their permission.

In this context the CJEU was asked whether selective distribution systems relating to luxury products, and designed mainly to preserve the "luxury image" of those products, are compatible with the cartel prohibition of Article 101 (1) TFEU.

Coty told the court that its main concern was to safeguard the cachet of its luxury brands such as Marc Jacobs, Calvin Klein and Chloe.

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And today the European Union court ruled: "A supplier of luxury goods can prohibit its authorised distributors from selling those goods on a third-party internet platform such as Amazon". The ruling said: 'A supplier of luxury goods can prohibit its authorised distributors from selling those goods on a third-party internet platform such as Amazon'.

"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.

"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.

Needless to say, this ruling has significant and broader competitive ramifications for the DF&TR industry.

The case is C-230/15 Coty Germany.

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