Online Marketplace Bans and Consumer Welfare - A Tale of Quality and Long Term Investment, or a Story of Limited Choice and Higher Prices?

6 Pages Posted: 14 Jun 2017

See all articles by Ariel Ezrachi

Ariel Ezrachi

University of Oxford - Faculty of Law

Date Written: June 9, 2017

Abstract

In recent years, manufacturers have increasingly restricted their distributors from selling products via online marketplaces (“marketplace bans”). Manufacturers view marketplace bans as a necessary measure to safeguard the integrity of their distribution system, and control quality, brand image and price. Yet these bans’ legitimacy has been the subject of scrutiny by competition authorities and courts, and they are currently under review by the Court of Justice of the European Union (CJEU) in a preliminary reference in a case between Coty Germany GmbH, a perfume and cosmetic manufacturer, and its authorised distributor.

This debate brings to light the reality of online competition – the central role played by intermediates, and the costs and risks associated with entry and expansion. It also highlights the different commercial interests at stake – of producers, distributors, marketplace operators and consumers.

Keywords: competition law, online marketplaces, verticla agreements

Suggested Citation

Ezrachi, Ariel, Online Marketplace Bans and Consumer Welfare - A Tale of Quality and Long Term Investment, or a Story of Limited Choice and Higher Prices? (June 9, 2017). Available at SSRN: https://ssrn.com/abstract=2983670 or http://dx.doi.org/10.2139/ssrn.2983670

Ariel Ezrachi (Contact Author)

University of Oxford - Faculty of Law ( email )

Oxford
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
329
Abstract Views
1,132
Rank
172,821
PlumX Metrics