Outright bans of internet sales, selective distribution, and competition law

Internet sales still constitute one of the biggest commercial challenges to owners of luxury and specialist brands, and the key competition law issues in this area are now being debated in the European Court of Justice. The ECJ's eventual judgment will impact considerably on the design, operation and enforceability of selective distribution models in the future.

In our June eAlert on the new Vertical Restraints Block Exemption regulation, we said that "the [European] Commission has indicated that it may also be possible in specific circumstances to agree an outright ban on Internet sales. The European Court of Justice is due to consider this question in a current reference from the Paris Court of Appeal.".

That case - C-439/09, Pierre Fabre Dermo-Cosmétique SAS - has now reached the stage of oral hearings before the ECJ. This eAlert highlights some of the key arguments put forward by the major players, and outlines the next steps in the case.

Read the complete article here

Lawyers Robert Vidal