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ARTICLE · 18 DECEMBER 2017

CJEU Issues Long-Awaited Coty Decision On Luxury Goods Supplier's Online Platform Ban

Jones Day
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On December 6, 2017, the CJEU issued its long-awaited judgment in the Coty case, which clarifies the extent to which an online platform ban within a selective distribution system for luxury goods is compatible with EU...

European UnionAntitrust/Competition Law
Serge Clerckx
Serge Clerckx
Marta Delgado Echevarría
Marta Delgado Echevarría
Philipp Werner
Philipp Werner
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In Short

The Ruling: On December 6, 2017, the Court of Justice of the European Union ("CJEU") issued its long-awaited judgment in the Coty case, which clarifies the extent to which an online platform ban within a selective distribution system for luxury goods is compatible with EU competition law.

The Result: Following Advocate General Wahl's opinion, the CJEU ruled that an online platform ban within a selective distribution system aimed at preserving the luxury image of goods complies with Article 101 of the Treaty on the Functioning of the European Union ("TFEU")—to the extent that: (i) the clause has the objective of preserving the luxury image of those goods; (ii) it is laid down uniformly and not applied in a discriminatory fashion; and (iii) it is proportionate in light of the objective.

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