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Coty, four months later: about the prohibition to resell on marketplaces

  • France
  • United Kingdom
  • Competition, EU and Trade


In a judgment of 6th December 2017, the Court of Justice of the European Union (EUCJ) ruled on whether Coty Germany could legally prohibit its authorised retailers from making use of marketplaces (e.g. Amazon) to sell luxury perfumes and cosmetics. The Court took the view that the prohibition could be justified by the need to preserve the prestigious image of the such products in the context of a selective distribution network.

Beyond luxury products, the Coty case solution may be transposed to high-quality or high-technology products subject to a case-by-case assessment. Even if linked to a selective distribution system (SDS) in the Coty case, the possibility to impose marketplace bans should be considered outside the framework of an SDS.

In the special issue of the Journal du Management Juridique on competition and distribution law, Dan Roskis shares his analysis of the legal issues and impacts of the Coty ruling in the retail sector in the light of the most recent national case-law.

Read the full article here.