NEWSLETTER-2019-metin

103 COMPETITION LAW shows the practical implementation of the Commission’s focus as set out in the final report of its e-commerce inquiry. Moreover, the determinations of the Commission in the decision set forth a valuable frame for companies to pay attention. Accordingly, it would be beneficial to examine the Guess decision of the Commis- sion in detail. Background Guess designs, distributes, and licenses clothing and accessories under numerous trademarks, including “ GUESS? ” and “ MARCIANO ”. Guess operates a qualitative selective distribution system in the Euro- pean Economic Area (“EEA”), where authorized retailers are chosen on the basis of quality criteria. As confirmed in the Coty ruling, suppliers in the EEA may op- erate distribution systems that best serve their commercial interests, including selective distribution systems. In a selective distribution context, it is required that end-consumers must be able to purchase from any authorized reseller, including across national borders. As is also known, authorized resellers must also be able to independently offer the relevant products online and across borders, and to set their own resale prices. This is further supplemented by the recent Geo- Blocking regulation 10 . The Commission’s Findings According to the decision 11 , Guess’ distribution arrangements restricted the authorized retailers in its selective distribution system from: • Using the Guess brand names and trademarks for the purpo- ses of online search advertising; 10 Regulation (EU) 2018/302, which came into force on 22 March 2018, and has applied since 3 December 2018, addresses unjustified on-line sales discrimina- tion based on customers’ nationality, place of residence, or place of establishment within the internal markets. 11 Case AT.40428, 17.12.2018, para. 2.