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Can we prohibit our dealer from selling online?

As a rule, no; a complete ban on internet sales is contrary to competition law. Limited steering is possible through quality standards and selective distribution criteria. We design the res…

Updated · July 20261 min readCategory · Focus Areas
Short answer

As a rule, no; a complete ban on internet sales is contrary to competition law. Limited steering is possible through quality standards and selective distribution criteria. We design the restrictions so that they do not attract penalties.

As a rule, no; a complete ban on internet sales is contrary to competition law. Limited steering is possible through quality standards and selective distribution criteria. We design the restrictions so that they do not attract penalties.

A distinction from EU case law helps: while a blanket ban on online sales is a hardcore restriction, limiting sales through third-party marketplaces — as opposed to the dealer’s own website — can be permissible within a selective distribution system, provided it is applied uniformly and does not become a de facto total ban. We calibrate the clause to stay on the lawful side of that line.

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This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.
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