Luxury Goods Manufacturers May Block Certain Online Sales on Third-Party Platforms

Luxury Goods Manufacturers May Block Certain Online Sales on Third-Party Platforms

December 7, 2017, Covington Alert

On 6 December 2017, the Court of Justice of European Union (CJEU) issued its long-awaited Judgment in Coty Germany GmbH v Parfümerie Akzente GmbH. Taking an approach similar to that adopted by Advocate General (AG) Wahl in his Opinion in July, the CJEU found that a supplier of luxury goods may prevent its authorised retailers from using third-party platforms in a “discernible” manner to sell its products, in order to preserve the products’ luxury image.