Rolex Fined €91.6 Million for Online Sales Ban
The French Competition Authority has imposed a €91.6 million fine on Rolex for preventing its authorized retailers from selling watches online, deeming it a violation of competition law.
18.12.2023 | French competition authority
The Autorité de la concurrence, France's competition authority, has fined Rolex France €91,600,000 for enforcing a ban on its authorized retailers from selling Rolex watches online for over a decade. This decision follows referrals from industry groups and dawn raids conducted by the authority.
The authority determined that the selective distribution agreement between Rolex France and its retailers constituted a vertical agreement that restricts competition. Rolex's defense, which claimed that the online sales ban was necessary to combat counterfeiting and parallel trade, was rejected. The authority noted that Rolex's main competitors allow online sales under certain conditions, suggesting that the same objectives could be achieved through less restrictive means.
In addition to the fine, the Autorité de la concurrence has mandated a disclosure and publication injunction against Rolex France. However, the authority dismissed concerns regarding resale price maintenance, finding insufficient evidence to support claims that Rolex France had restricted the pricing freedom of its retailers.