Court to consider online luxury sales

Europe’s top court will begin a landmark case today which could determine whether luxury goods companies can stop retailers from selling their products via marketplaces such as Amazon or eBay.

Owners of luxury brands have been fighting with online retailers for the last decade, arguing they should have the right to choose who distributes their products to protect their luxury image and exclusivity. Online platforms dispute this, saying that such restrictive distribution deals are anti-competitive and hurt consumers. The dispute is in the spotlight now because of the European Commission’s push for more cross-border online sales to boost growth and jobs, and catch up with the US and Asia.

The case before the Luxembourg-based Court of Justice of the European Union (ECJ) concerns the German subsidiary of US beauty products maker Coty, which wants to stop a retailer from selling its goods on online marketplaces such as Amazon.