Rolex France has been ordered by the French competition authority to pay 91.6 million euros for disproportionate online sales conditions imposed on its retailers.
Rolex France has been fined 91.6 million euros by the French Competition Authority. A court decision handed down on Tuesday December 19 considers the ban on its distributors selling its products online “for more than 10 years” to be excessive.
Referred to by the Union de la bijouterie horlogerie and the jeweler Pellegrin & Fils, the French competition authority considers in its press release “that the stipulations of the selective distribution contract linking Rolex France to its distributors characterize a vertical agreement restricting competition“.
The French competition watchdog’s decision is based on “serious” practices that “amount to closing off a marketing channel, to the detriment of consumers and distributors, at a time when online distribution has been booming for luxury products, including watches, over the past fifteen years”.
Given the duration (over ten years) and the nature of the practices condemned, the French Competition Authority imposed a fine of 91,600,000 euros on Rolex France SAS.
Rolex Holding SA, Rolex SA and the Hans Wilsdorf Foundation are held “jointly and severally liable for payment of the fine.
A disproportionate clause despite legitimate fears
In its defense, Rolex pointed out that it had banned the sale of products online in order to preserve its image and combat counterfeiting.
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