L'Oreal has taken eBay to court across Europe, suing in Britain, Germany, France, Belgium and Spain over the sale of fake fragrances and cosmetics on the site.
L'Oreal claims there is an increasing volume of counterfeit goods being sold on eBay.
The online auctioneer said negotiations between the companies on the issue broke down because L'Oreal was being unreasonable.
Justice Richard David Arnold ruled in London's High Court that eBay Europe was not liable for trademark infringements committed by its users.
