PARIS – Rolex has been slapped with a 91.6 million euro fine for prohibiting its authorized distributors from selling online for more than a decade, according to a ruling of France’s competition watchdog.
In its ruling, the Haute Autorité de la Concurrence said the watchmaker’s actions were “serious, because they amounted to closing a commercialization channel, to the detriment of consumers and distributors, while online distribution has been growing momentum for the past 15 years for luxury goods, including watches.”
The body rejected the Swiss watchmaker’s argument that banning online sales protected its image and thwarted counterfeiting, calling such a measure disproportionate. It also pointed out that competitors facing the same risks had “put solutions in place (particularly technological)” that allowed them to sell online while fighting counterfeiting and off-network sales.
Given Rolex developed “a program for the online purchase of pre-owned watches, whose authenticity it guarantees” with one of its retailers, “an absolute ban on the online selling of its products cannot therefore be justified,” it continued.
The Swiss watchmaker was however cleared of restricting prices, as the watchdog found that “the evidence in the case did not prove Rolex France had restricted the pricing freedom of its authorized retailers.”
The case had been referred to the French body by the Union de la Bijouterie Horlogerie professional organization, Marseille-based retailer Pellegrin & Fils and had resulted in raids on Rolex’s offices in France.
The Haute Autorité de la Concurrence holds Rolex France, Rolex Holding SA, Rolex SA and the Hans Wilsdorf Foundation” jointly and severally liable” for payment of the fine.
In addition to the fine, the French competition watchdog imposed that Rolex inform all its authorized retailers of the decisions and publish the summary of its decision on its website in French newspaper Le Figaro online and in print as well as the Montres Magazine quarterly.
