On 13 October, in response to a reference from the French
courts, the ECJ ruled
that a restriction on online sales in a selective distribution
agreement for cosmetics and personal care products restricts
competition unless objectively justified (which it indicated was
unlikely to be the case) and falls outside the Vertical Agreements
Block Exemption (VABE).
Pierre Fabre is a manufacturer of cosmetics and personal care
products. Its selective distribution included an obligation that
sales must be made exclusively in a physical space with a qualified
pharmacist present. The French Competition Authority investigated,
and ordered Pierre Fabre to remove the restrictions. On appeal, the
Cour d'Appel de Paris referred a question to the ECJ:
