European Court of Justice on online sales in the context of a selective distribution network
- November 21, 11
On October 13 2011 the European Court of Justice (ECJ) ruled on restrictions on online sales, clarifying that selective distribution agreements imposing a general and absolute ban on the sale of cosmetics and personal care products by selected (authorised) distributors to end-users via the internet might result in contrast with EU competition rules.
The ECJ has followed the Advocate General’s opinion on the same lawsuit (see our contribution of March 16 2011 http://www.lexology.com/library/detail.aspx?g=40e08c79-3bb2-422f-841e- 8f1502d5e94c), according to which in order to comply with EU law, distributors should be free to sell within a selective distribution system, both actively and passively, to all end users, located outside the physical trading area, who wish to purchase the products via the internet. [...]