Selective distribution aims at protecting brands by enhancing
the quality and excellence of their products.
Producers of luxury goods have often felt that online
marketplaces (e.g. Amazon) ‘dilute' the prestige of the
image associated with their brands as a result of sizeable
advertising investments strategies.
Several court decisions have dealt with this issue to date, but
the recent Nike case marks a notable turning point.
Selective distribution and the law
EU Regulation 330/2010 (1) on vertical agreements
defines selective distribution as ‘a distribution system
where the supplier undertakes to sell the contract goods or
services, either directly or indirectly, only to distributors
selected on the basis of specified criteria and where these
distributors undertake not to sell such goods or services to
unauthorised distributors within the territory reserved by the
supplier to operate that system'.
