The battle between online auction firm eBay and luxury goods manufacturers has moved a step closer to resolution, with a French court ruling they must co-operate to halt counterfeit sales.
The auction firm has faced legal challenges by top brands including Tiffany's, Hermès and L'Oréal, who have accused eBay of failing to stop the sale of counterfeit goods through its site.
In the latest challenge by L'Oréal, Paris's Tribunal de Grande Instance ruled that eBay was not liable and ordered the two companies to collaborate on combating the problem, according to the Financial Times.
The court said eBay was making a reasonable effort to keep fake goods off its site, but the process could be improved through collaboration that will be monitored by a court-appointed mediator.
L'Oréal said it was satisfied with the court's ruling and eBay said the ruling supported the auction firm's view that collaboration and not litigation was the best way of tackling counterfeit sales.