Selective distribution and resale bans on internet

The judgment of the Court of Justice of the European Union of 6 December 2017.

December 11, 2017

On 6 December 2017, in case C-230/16 Coty, the Court of Justice of the European Union established that a selective distribution system of luxury goods may prohibit internet sales via third-party platforms, on the condition that the system is based on objective criteria of a qualitative nature, laid down uniformly and not applied in a discriminatory fashion, and that do not go beyond what is necessary.

In practice, the ECJ Judgment entails the possibility for suppliers of luxury products to restrict internet sales of their goods via platforms which do not belong to their selective distribution system. The judgement may also have certain impact in sectors not strictly related to luxury products.

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