Abstract
In recent years, manufacturers have increasingly restricted their distributors from selling products via online marketplaces (“marketplace bans”). Manufacturers view marketplace bans as a necessary measure to safeguard the integrity of their distribution system, and control quality, brand image and price. Yet these bans’ legitimacy has been the subject of scrutiny by competition authorities and courts, and they are currently under review by the Court of Justice of the European Union (CJEU) in a preliminary reference in a case between Coty Germany GmbH, a perfume and cosmetic manufacturer, and its authorised distributor. This debate brings to light the reality of online competition – the central role played by intermediates, and the costs and risks associated with entry and expansion. It also highlights the different commercial interests at stake – of producers, distributors, marketplace operators and consumers.
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