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The online auctioneer has hit back, accusing LVMH - which also carries brands such as Dior, Givenchy and Kendo - of having a hidden agenda. It has vowed to fight the decision in an appeal.

The hearing was held just a month after eBay was ordered to pay handbag manufacturer Hermes £16,000 in another case heard by another French court. The auctioneer has also been sued by Tiffany jewellers for its inability to prevent

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sellers from shifting counterfeit products, and is currently facing action from L'Oreal over its sales of perfumes.

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

eBay earns commissions from sales made through its websites. Luxury goods groups have accused the website of intentionally facilitating the sales of counterfeit products by setting up a marketplace where sellers can knowingly trade fake goods without any adverse consequences.

eBay claims it has put into place a system to help block counterfeit sales as well as a programme that analyse suspicious sales patterns by sellers. However, it shirked responsibility for the problem - despite earning a healthy commission of the £30 billion worth of goods traded on the website last year - claiming it has limited capacity to regulate sales, and therefore limited responsibility.