It is no secret that some luxury brands are not too keen on online sales.
But the European court said that for luxury goods firms, such rules can be critical to protecting the value of the products.
The ruling said luxury brands have no contractual relationship with online marketplaces, which in turn are not required to comply with brands' quality criteria.
"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. A judge has now ruled that when a brand collaborate with a small group of retailers, it can say where its products can and cannot be sold, in order to protect the brand's image, according to the FD. In yesterday's judgment, the Court repeats it earlier case law that selective distribution systems are compatible with the European Union cartel prohibition if resellers are chosen on the basis of objective criteria of a qualitative nature that are laid down uniformly and not applied in a discriminatory fashion and that do not go beyond what is necessary.
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