In a joint statement released Thursday, the two companies said they had agreed to settle ongoing litigation and put "cooperation measures" in place.
"Ebay and LVMH today announced a cooperative effort to protect intellectual property rights and combat counterfeits in online commerce. Thanks to the cooperation measures put in place, the companies have settled ongoing litigation," eBay and LVMH said.
No further details were available about what these measures entail.
Six brands under the LVMH umbrella including Dior and Givenchy, filed complaints against eBay in 2006 and two years later, a French court slapped a 38.5 million euro ($52.1 million) fine on the site. The luxury giant accused eBay of allowing people to trade fake goods causing damage to the brands involved.
A subsequent appeals court hearing in France in 2010 cut the fine to 5.7 million euros.
The saga continued in 2012 when another French court hearing overturned the previous decision, saying that it could rule on eBay's U.K. and French sites, but not on its U.S. website.
This is not the first time eBay has been involved in a similar lawsuit. In 2004, luxury jeweller Tiffany & Co attempted to sue the online auctioneer, accusing it of allowing the sale of counterfeit goods. However, the case was thrown out in 2010.