The French Competition Authority announced the imposition of a fine of 91.6 million euros on the French subsidiary of Rolex, due to the Swiss watchmaker preventing its distributors from selling its products online “for more than ten years.”
At the request of the Federation of Watch and Jewelery Industry and the jewelry company “Belgran & Sons,” the authority considered in a statement that “the terms of the selective distribution contract, which links Rolex France to its distributors, represent a vertical agreement that restricts competition.”
The French competition watchdog considered these practices “dangerous, because they amount to closing a marketing channel, to the detriment of consumers and distributors, while online distribution has been witnessing, for fifteen years, a growing boom in luxury products, including watches.”
The authority added: “Taking into account its duration (more than 10 years) and its nature, the authority announces a penalty of 91.6 million euros” against Rolex France, and holds Rolex Holding SA, Rolex SA, and the Hans Wilsdorf Foundation (entities). Another from the Swiss group) “jointly and severally liable to pay the fine.”
To justify the ban on online sales, Rolex cited a desire to preserve its image and fight counterfeiting. While the authority considered these concerns to be legitimate, it considered that a complete ban on online sales was “inappropriate” to the desired goals.
2023-12-20 22:02:52
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