Restrictions on selective distribution through online platforms — comments on the Coty case

Abstract

Due to the dynamic development of internet sales, selective distribution systems are becom-ing more and more popular. However, there is a dispute about their compliance with competition law. The problem concerns the restrictions on use of the Internet as a sales channel. In many cases, restrictions imposed by suppliers lead to questions about the permissible restrictions of distribution channels. In the light of competition law, an important problem is to find out whether the main dis-tributor can restrict sales of unauthorized distributors, in particular sales via third party internet plat-forms. The study analyzes a selective distribution system from the point of view of permitted sales restrictions, mainly based on the preliminary ruling of the CJEU in the Coty case. German court case law was also used. As a result it has been shown that, as a rule, it is unacceptable to limit Internet sales, but resignation from a specific online sales channel (e.g., a third party platform) is possible.