NEW YORK — LVMH announced Monday that following an earlier claim the company made to the Tribunal de Commerce in Paris against eBay, the online commerce site has been found guilty of gross misconduct and will pay damages of 38.9 million euros, or about $63 million, to the luxury company.
According to the court ruling, eBay was found guilty of gross misconduct and detrimental breach for allowing the sale of counterfeit Louis Vuitton and Christian Dior goods on its site. And its claim that clients are responsible for the legalities of the transactions they engage in was dismissed.
Additionally, the popular commerce site was found guilty of practicing unlawful sales by allowing the auction of Guerlain, Givenchy, Kenzo and Christian Dior perfumes, which can only be sold through distributors authorized by LVMH.
As part of the ruling, eBay was ordered to pay 16.4 million euros to Louis Vuitton Malletier, 19.3 million euros to Christian Dior and 3.2 euros to the aforementioned perfume brands.
In response to the ruling, eBay announced Monday that it plans to appeal, arguing that the final decision represents a threat to small businesses.
“We believe that the overreach manifests itself through an attempt to impose, in France, a business model that restricts consumer choice through an anticompetitive business practice,” the company said in a statement released Monday.