Introduction
In its decision dated December 6, 2017, the European Court of
Justice ("ECJ") answered the questions referred by the
Frankurt - Higher Regional Court in its request for a preliminary
ruling.1 The questions raised are with
regard to the Coty Germany GmbH's ("Coty")
contractual clause against its reseller Parfümerie Akzente
GmbH'nin ("Akzente"), which prohibits Akzente from
making online sales through third party platforms (amazon.de) or
through the use of a different business name. The ECJ held that
Coty is allowed to apply such clause, provided that it operates a
lawful "selective distribution system."
Selective Distribution System
The selective distribution system is mostly applied in the sales
of branded products. It is 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
