The Legality of Restrictions on Internet Sales under Selective Distribution System

China Business and Market - - NEWS - LOU Wei-yang

(East China University of Political Science and Law,Shanghai200063,China)

Abstract:The restrictions on internet sales under selective distribution system will inevitably hinder market competition, but they may also be exempted because of their legitimate objectives. In European Court of Justice’s preliminary reference, restrictions on internet sales will be prohibited in principle and exempted in exception,and whether they are hardcore restrictions is the key problem. Preserving the brand image of luxury goods,not general product,will justify a restriction of competition. This is also a problem in China,however,the existing circumstance of legislation,law enforcement,and administration result in ignorance of this kind of vertical restriction. With the improvement of the implementation level of anti-monopoly law in China, this issue will be inevitable,and the judgments of the European Court of Justice have some reference meaning to China.

Key words:selective distribution;internet sales;vertical restrictions;block exemption;brand image

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