eBay has been ordered to pay 38.6 million euros in compensation to Louis Vuitton's parent company LVMH, for letting auctioneers sell fake version of its products online.

LVMH asked for 50 million euros in damages stating that eBay's French arm did not do enough to prevent the sale of counterfeit items like Louis Vuitton-branded bags, perfumes and sunglasses.

At one point in 2006, apparently 90% of the LVMH goods for sale on eBay were fakes, the fashion company told a Paris court.

In addition, eBay was ordered to pay 3.25 million euros to perfume brands Christian Dior, Kenzo, Givenchy and Guerlain for unauthorised sales.

A month ago eBay was ordered to pay Hermes 20,000 euros for similar reasons and is planning to appeal this latest decision saying it has strict measures against fake goods.