The world's biggest online auctioneer, eBay, was ordered by a French court yesterday to pay €38.6m euros in damages to the luxury goods group LVMH for negligence in allowing the sale of fake bags, lipsticks and designer clothes.

The fine of more than £30m is the biggest eBay has faced in Europe and is the latest episode in a series of long-running legal battles it has fought with fashion and cosmetic giants.

The site immediately appealed against the...