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Luxury goods brands may block distributors from selling their products on e-commerce sites such as Amazon and eBay following a ruling by the European Court of Justice.
The European Court of Justice (ECJ) ruled on December 6 that such a ban did not go beyond what is necessary “to preserve the luxury image of the goods” and did not break EU competition rules by restricting customer choice. Therefore, luxury goods manufacturers will be able to prevent their products from being sold on third party websites by distributors.
As reported by ILM, the court’s decision puts an end to a decade-long battle that has split EU nations, since the cases were judged differently in, for example, Germany or the Netherlands.
“The quality of luxury goods is not simply the result of their material characteristics, but also of the allure and prestigious image which bestows on them an aura of luxury. That aura is an essential aspect of those goods” the ECJ said.