Luxury (by) object and the effects of silence of the Court of Justice in Coty. Case note on the Judgment of the Court of 6 December 2017 in Case C-230/16 Coty Germany GmbH v Parfümerie Akzente GmbH. Case Notes 01/2018

Zukakishvili, Keti (2018) Luxury (by) object and the effects of silence of the Court of Justice in Coty. Case note on the Judgment of the Court of 6 December 2017 in Case C-230/16 Coty Germany GmbH v Parfümerie Akzente GmbH. Case Notes 01/2018. UNSPECIFIED.

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Abstract

The much-awaited Coty2 judgment did not disappoint. The Court of Justice (“the Court”) shed light on the major question concerning online distribution of luxury products. Drawing on the settled case-law on the selective distribution systems (“SDSs”) the Court provided a new element of clarification: EU competition law allows suppliers of luxury products to prohibit their authorized retailers from selling the contract goods on third-party internet platforms. However, the judgment has to be read in its context and all the conditions stipulated by the Court should be carefully considered while drafting distribution agreements. Although the practical importance of this ruling cannot be overstated, the present note also attempts to analyze Coty from a theoretical angle. The judgment will be placed in the context of an ongoing debate over the concept of “by object” restriction of competition under Article 101(1) TFEU and the consequences of the Court’s reasoning, as well as its silence, will be discussed.

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