The on-line auction house eBay has been find 40 million euros by a court in Paris for allowing fake items to be sold on its site.
The luxury goods group LMVH had accused eBay of not doing enough to prevent the sale of counterfeit bags and perfumes. The brands affected include Louis Vuitton, Christian Dior and Givenchy.
EBay criticised the ruling, adding it would appeal.
The LMVH brands said that even auctions of legitimate perfumes were illegal, because only specialist dealers were allowed to sell them.
It is the second time in a month that eBay has been penalised. On June 4 another French court found the site responsible for the sale of fake Hermes bags, and fined the company 20,000 euros.
The decision is seen as a landmark ruling, as it could force eBay to review its operations. The site operates by bringing buyers and sellers together with minimal regulation from the company.