The Higher Regional Court of Frankfurt ruled on 12 July 2018 that manufacturers of luxury products are permitted to restrict authorised resellers from reselling on online marketplaces.

The marketplace restriction at issue was imposed by Coty Germany on Parfümerie Akzente, one of its authorised distributors, to prohibit it from distributing Coty perfumes on a third-party online marketplace. The Frankfurt court confirmed that the restriction is justifiable as it is aimed at preserving the luxury image of Coty’s products. It also found that the restriction, which did not affect the ability of Parfumerie Akzente to maintain its own online shop, did not go further than necessary to achieve this aim. As part of a wider selective distribution system that was administered based on objective, qualitative criteria and uniformly applied in a non-discriminatory manner, the marketplace restriction also fell within the safe harbour under the EU Vertical Block Exemption Regulation.

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Photo of Gillian Sproul Gillian Sproul

Gillian Sproul focuses her practice on advising clients on the impact of EU and UK competition law on their transactions, operations and business strategy. She represents clients in cartel and abuse of dominance cases, energy regulatory investigations and market inquiries before the EU

Gillian Sproul focuses her practice on advising clients on the impact of EU and UK competition law on their transactions, operations and business strategy. She represents clients in cartel and abuse of dominance cases, energy regulatory investigations and market inquiries before the EU and UK regulators and courts and has obtained EU, UK and other national clearances for numerous complex M&A and joint venture transactions. Her experience extends also to advising clients on competitor co-operation and information exchange, distribution and licensing and compliance.

Gillian is recognised as a Leading Individual for Competition in The Legal 500 UK 2023. The guide quotes one source as saying “The team is led by Gill Sproul who has a quiet and confident manner which is appreciated in the area of competition law.” Another source states “Gill Sproul knows our industry well and ensures that the advice given is tailored and down to earth. Gill is practical, approachable and very easy to work with”.

According to the Chambers UK Guide 2022, Gillian “has great experience; she’s sharp, understands clients’ needs and provides clear instructions when coordinating international projects.”