A court in Paris has fined eBay more than £1.5m for breaching an injunction that banned its users from buying or selling goods made by French luxury conglomerate Louis Vuitton.
The €1.7m fine was awarded after the court found that eBay had not done enough to prevent the trade of goods made by LVMH, which owns exclusive brands including Louis Vuitton, Moet Hennessy, Givenchy and Christian Dior.
The auction website had been banned from letting such sales take place following a 2008 court case - but the court found that there had since been more than 1,300 incidents in which users advertised cosmetics and perfume made by the company.
LVMH said the award was a victory in its fight to retain the right to "selective distribution" - control over which outlets are able to sell its goods.
"This decision constitutes an important step in the fight against unlawful practices," said the company. "Selective distribution ensures the security and quality of products for consumers. It generates numerous jobs and contributes to the ongoing worldwide success of European luxury goods brands."
In the belief that its high-value brands will be hurt if they can be resold online, LVMH has been waging an ongoing battle against internet retailers such as eBay for several years.
Last year it registered a significant victory in which the auction website was ordered to pay £30m in damages.
That ruling took place after it emerged that fake goods using LVMH's brands were being sold on eBay, but the ruling extended to preventing the sale of any of the company's goods on the site - regardless of whether they were pirated or not.
In a statement, eBay said the fine was "disproportionate" and that it would be appealing the decision in higher courts, since it believes that the injunction constitutes an unfair restriction of trade.
"Today's outcome hurts consumers by preventing them from buying and selling authentic items online," said Alex von Schirmeister, the general manager of eBay in France. "The injunction is an abuse of 'selective distribution'. It effectively enforces restrictive distribution contracts, which is anti-competitive."
The French conglomerate has also taken action against Google, which it says is acting illegally by selling search advertising using the company's trademarks.
That's what happens when a French manufacturer kicks up a stink
