eBay has been fined £30.6 million (€38.8 million) after luxury goods firm LVMH sued in a French court.
LVMH, owner of luxury goods brands such as Louis Vuitton and Christian Dior, started the case after 90% of items from the brands found on eBay were found to be fake.
The court ordered eBay to pay €16.4 million to Louis Vuitton Malletier, £19.28 million to Christian Dior, and £3.2 million to the perfume brands.
LVMH said in a statement: “The court brings an important contribution to the protection of creative works which make up an important part of our national heritage and generate many jobs in France.”
Shares in eBay fell last night and similar court room losses could badly damage the online firm, which in January reported full year revenues of $7.67 billion and net income of $2.11 billion.
In a statement, eBay hit out at the ruling and LVMH. “If counterfeits appear on our sites we take them down swiftly, but today’s ruling is not about our fight against counterfeit; today’s ruling is about an attempt by LVMH to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers everyday.
“We believe that this ruling represents a loss not only for us but for consumers and small businesses selling online, therefore we will appeal. It is clear that eBay has become a focal point for certain brand owners’ desire to exact ever greater control over e-commerce. We view these decisions as a step backwards for the consumers and businesses whom we empower everyday”, eBay said.
Related Links
