NEWSLETTER-2019-metin

104 NEWSLETTER 2019 • Selling online without prior and specific authorization by Guess. Guess had full discretion for this authorization, which was not based on any specified quality criteria; • Selling to customers located outside the authorized retailers’ allocated territories; • Cross-selling among authorized wholesalers and retailers; and • Setting retail prices of Guess products independently (resale price maintenance). Each of these restrictions will be examined in detail, below, in light of the Commission decision. Online Search Advertising Restrictions The Commission determined that a key instrument used by Guess to implement its e-commerce strategy and to control the expansion of online sales by its independent distributors was to restrict the use of the Guess brand names and trademarks and, in particular, in Google AdWords 12 . According to the Commission, Guess systematically banned its retailers from using or bidding on Guess brand names and trademarks as keywords in Google AdWords in the EEA. It is further assessed that although Guess operated a selective distribution system in order to preserve the brand image of its products, it pursued different objec- tives when it came to its Google AdWords policy. It is emphasized that Guess sought to maximize traffic to its own website at the expense of the independent Guess distributors and, therefore, it sought to reduce competitive pressure from authorized retailers on Guess’ own online retail activities, by curtailing the ability of authorized retailers to use this advertising tool effectively, and to keep down its own advertisement costs. The Commission concluded that banning the use of the Guess brand names and trademarks in Google AdWords restricted the “ find- 12 Case AT.40428, 17.12.2018, para. 40.