THE WHAT? An advisor to the European Court of Justice, Manuel Campos Sanchez-Bordona, Advocate General, has issued an opinion in the ongoing battle between Amazon and Coty in favour of the former, according to a report published by Nasdaq.
THE DETAILS Coty has been attempting to protect its ‘aura of luxury’ via a selective distribution strategy which bars its distributors from selling via third party platforms, such as Amazon and eBay.
A German court initially ruled in favor of Coty but, at appeal, has sought a recommendation from Europe’s highest court. These opinions, while non-binding, are almost always reflected in the ruling to follow.
THE WHY? While Coty, and other prestige manufacturers of prestige beauty products, are keen to preserve their exclusivity, for Amazon, the cosmetics category is one of its growth drivers.