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Luxury Retailer Disdainful of Amazon Wins Appeal

Luxury Retailer Disdainful of Amazon Wins Appeal

In the meantime, luxury department store retailers such as Harrods, Selfridges, Harvey Nichols and Liberty - as well as luxury brands that have direct-to-consumer sales points - could see a boost in sales as online marketplace customers would need to revert to these as authorised product distributors.

Luxury owners have long waged a battle against what they say are free riders cashing in on their exclusivity and branding. Only recently have some companies buckled and accepted online sales, but these companies usually still only sell on their own online platform.

Coty's German subsidiary and retailer, Parfumerie Akzente, had been selling Coty cosmetics on Amazon and other online sites, despite its parent asking it to stop.

Yesterday the court ruled that "such a prohibition is appropriate and does not, in principle, go beyond what is necessary to preserve the luxury image of the goods".

Beauty company Coty said it brought the case to protect the cachet of its brands like Chloe and Marc Jacobs.

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It is no secret that some luxury brands are not too keen on online sales.

Europe's top court has passed a law restricting distributors from selling brands online without permissions.

The issue has split European Union countries, with Germany more eager to promote e-commerce.

"Our preliminary view is that such manufacturers have not received carte blanche to impose blanket bans on selling via platforms", the office's president, Andreas Mundt, said in a statement. The court further said that it would not breach the rules of competition.

The decision out of Luxembourg comes in response to contractual proceedings that the luxury retailer Coty Prestige initiated in Germany against one of its authorized retailers.

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