Internet sales are a thorn in the side of many brand owners, who to a large extent lose control of their brand. This is never truer than sales through market places such as Amazon and eBay.
Brand owners and retailers are used to being told that bans on internet sales are unlawful and expose the parties to the risk of huge competition law fines.
But with care, this case will open up new possibilities for some brand owners to legitimately safeguard their products. It could also help reduce that ever-present pressure from retailers for better prices so that they can match the cut-price internet sales that they struggle to compete against.
To learn more about the implications of this decision, please contact James on T: +44 1392 685325 or E: email@example.com
the BBC has reported the head of Germany's Competition Authority as saying, "Our preliminary view is that such manufacturers have not received carte blanche to impose blanket bans on selling via platforms". Why? Well in short, the case seems to apply only if the trading arrangement can properly be described as a selective distribution agreement.