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Luxury good-makers win fight over online sales bans

From BBC - December 6, 2017

Europe's top court has ruled that luxury good firms can stop distributors selling their products online on websites such as Amazon and eBay.

The European Court of Justice said in principle a ban was "appropriate to preserve the luxury image" of products.

This would not break competition rules by limiting consumer choice, it said.

The case was bought by beauty giant Coty, which owns brands such as Marc Jacobs and Calvin Klein, but is expected to set a precedent.

Opponents have warned that restricting sales will hurt smaller businesses.

But the European court said that for luxury goods firms, such rules can be critical to protecting the value of the products.

"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," the court found.

The decision stemmed from a case brought by Coty's German unit against one of its retailers, Parfumerie Akzente, which used Amazon to sell Coty products.

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