EBay has had its fine over LVMH fakes sold on its site slashed by a French court of appeal.

The court ruled that EBay should pay €5.7m (£4.7m) to the luxury group.

In June 2008 it had been ordered to pay €38.5m (£32m) and was blocked from selling some of its genuine perfume bottles in the future.

EBay head of communications Vanessa Canzini said:“This is a great victory for EBay and consumers. “The reduction of the fine by €33m (£27.4m) shows that the original claim by LVMH was ludicrous.

“We are also pleased that sense has prevailed and the injunction against EBay has been reduced in scope.

“This case has always been about LVMH seeking to prevent people from buying and selling authentic LVMH products online.”

LVMH put out a statement claiming that the court’s decision to uphold a fine, and its ruling that EBay should not be exempt as it was acting as a hosting service, helped clarify the rules applicable to online selling and would prevent “illicit” online practices in the future.