Online auction house eBay has been hit with a substantial Euro fine this week after the Commercial Court of Paris ruled the bidding platform had failed to properly adhere to an injunction preventing the sale of genuine perfumes created by luxury brand maker LVMH.
What\'s that smell? Image: LVMH.
The fine, which totals some 1.7 million Euros (approx. $2.6 million USD) comes after eBay sellers in France were found to be trading exclusive Louis Vuitton / Moet Hennessy fragrances and cosmetics such as Christian Dior, Givenchy, Guerlain and Kenzo, despite a prior court ruling designed to block such sales.
In reacting to the penalty, which it labelled as excessive, eBay said it hoped to see the ruling overturned and that the injunction against it is “an abuse of selective distribution,” not only restricting distribution contracts but also encouraging anti-competitive practice.
“Today’s outcome hurts consumers by preventing them from buying and selling authentic items online,” commented Alex von Schiermeister, director of eBay Europe, in an official statement.
“We believe that the higher courts will overturn this ruling and ensure that e-commerce companies such as eBay will continue to provide a platform for buyers and sellers to trade authentic goods,” he added.
Despite the ruling to the contrary, eBay insists the auction heavyweight complied with the original 2008 injunction after LVMH accused the service of selling counterfeit perfumes and using brand keywords in its site advertising.
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