NEWSLETTER-2017

118 NEWSLETTER 2017 of luxury goods to check that the goods will be sold online in an en- vironment that meets the qualitative conditions that it has agreed with its authorized distributors. Thus, this clause is appropriate to preserve the luxury image of those goods. ECJ considered the fact that the supplier does not impose restric- tions with regard to the internet sales, in general, but the sales only made through third party platforms or a different business name. Accordingly, the ECJ concluded that the restriction is proportionate. The ECJ also refers to the resolutions of the Preliminary Report on the E-commerce Sector Inquiry carried out by the Commission 3 that are approved by the Final E-Commerce Report. 4 It notes that despite the increasing importance of third-party platforms in the marketing of distributors’ goods, the main distribution channel, within the context of online distribution is, nevertheless, constituted by distributors’ own online shops, which are operated by over 90% of the distributors sur- veyed. Conclusion In light of the Decision, a contractual provision which prohibits internet sales on third-party platforms in a selective distribution sys- tem designed for luxury goods, is not contrary to competition law. This is valid on the condition that that the clause has the objective of preserving the luxury image of those goods, that it is laid down uniformly, and not applied in a discriminatory fashion, and that it is proportionate in light of the objective pursued, these being matters to be determined by the referring court. The Decision is enlightening for the undertakings that apply selective distribution systems. On the other hand, it is important to 3 The Preliminary Report on the E-commerce Sector Inquiry carried out by the Commission pursuant to Article 17 of Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles [101 and 102 TFEU] (OJ 2003 L 1), p. 1; 15 September 2016, http://ec.europa.eu/competition/antitrust/sector_inquiry_preliminary_report_ en.pdf (Access date: 20 December 2017). 4 The Final E-Commerce Sector {SWD(2017) 154 final}, 10 May 2017, http://ec.europa.eu/competition/antitrust/sector_inquiry_final_report_en.pdf (Access date: 20 December 2017).