Marketplaces Restrictionsand Selective Distribution after Coty Germany

Abstract

This article discusses the framework of selective distribution agreements within EU competition law following the Coty Germany case and the EU Commission’s 2017 E-commerce report. It argues that the judgment removed, in essence, the limitation of sales via online platforms from the ‘by object box’. In respect of luxury goods, the ban is considered not to infringe competition law at all. In this context, the article addresses one of the judgment’s key points: what constitutes a ‘luxury good’ and evaluates to what an extent this definition can be practically applied. The authors also embark on the conditions under which the restriction is considered proportionate (when applied to non-luxury goods) and point to the risk of divergent interpretations of platform bans across member states. To illustrate the latter, several examples are given from national case-law. The considerations are completed with a brief look at problematic restrictions on the use of price comparison tools.

Keywords

• coty
• platform ban
• selective distribution
• distribution of luxury goods
• distribution of branded goods
• restriction of online sales
• e-commerce
• restriction on passive sales
• price comparison tools
• marketplace restriction