Court Orders eBay To Pay $61 Million To LVMH

Court Orders eBay To Pay $61 Million To LVMHA French court ordered eBay Inc., on Monday, to pay 38.6 million euros ($61 million) to a high-end fashion company, LVMH, on the pretext of allowing counterfeit goods to be sold on the auction site.

LVMH, which is home to such prestigious brands as Louis Vuitton, Givenchy, Fendi, Emilio Pucci and Marc Jacobs, complained that it had suffered a damage of about 50 million euros because eBay's French arm had not taken sufficient measures to prevent sales of counterfeit items.

But according to eBay, LVMH has a hidden agenda. “Today’s decisions are not about fighting counterfeiting. It’s about LVM’s desire to protect commercial practices that exclude all competition,” it said.

EBay had been sued by Tiffany, jewelers, last year for not caring about the sales of counterfeit goods on its site. It also faces action from L'Oreal for the sale of perfumes on the site.

In a statement, eBay said, “We will fight all these decisions in the name of eBay users, and we have decided to appeal. If counterfeit goods are put up for sale on our site, we scrap them as soon as possible.”