In a groundbreaking decision, France’s antitrust agency has levied a substantial $100 million fine against Rolex for its alleged decade-long crackdown on distributors involved in the online sale of the renowned Swiss luxury watches.
The Autorite de la Concurrence categorically rejected Rolex’s justifications, citing the online ban as a measure to combat counterfeiting and parallel trade. The regulator deemed these violations as severe, emphasizing the adverse impact of closing a crucial marketing channel in the thriving online distribution landscape for luxury products, particularly watches, which has witnessed remarkable growth over the past 15 years.
Alongside the hefty fine, the antitrust regulator has issued a directive for Rolex’s French unit. This mandates the unit to promptly inform its retailers of the regulatory decision and publish a comprehensive summary on its website within two months, ensuring visibility for seven consecutive days.
This regulatory intervention follows industry complaints and meticulous investigations by the authority. The regulator holds Rolex France jointly liable with key entities, including Rolex Holding SA, Rolex SA, and the Hans Wilsdorf Foundation.
