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Firms blocking Web sales limit competition -EU court

Published 03/03/2011, 04:03 AM
Updated 03/03/2011, 04:08 AM

LUXEMBOURG, March 3 (Reuters) - A corporate policy of blocking sales over the Internet is "disproportionate", Europe's highest court wrote in an opinion on Thursday, a view that could have wide ramifications for how consumer products are sold.

"In the opinion of Advocate General (Jan) Mazak, cosmetic company Pierre-Fabre's absolute refusal to allow its French distributors to sell its products on the Internet appears to be disproportionate," the European Court of Justice said in a statement.

"An absolute ban on selling via the Internet, in the context of a selective distribution network which goes beyond what is objectively necessary in order to distribute goods in an appropriate manner in light of their material qualities, aura and image, has the object of restricting competition", it said.

While only an opinion at this stage, the opinions of advocates-general of the European Court of Justice are upheld by the court rulings in more than 80 percent of cases.

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