PARIS – Rolex has been slapped with a 91.6 million euro high quality for prohibiting its licensed distributors from promoting on-line for greater than a decade, in accordance with a ruling of France’s competitors watchdog.
In its ruling, the Haute Autorité de la Concurrence mentioned the watchmaker’s actions had been “severe, as a result of they amounted to closing a commercialization channel, to the detriment of customers and distributors, whereas on-line distribution has been rising momentum for the previous 15 years for luxurious items, together with watches.”
The physique rejected the Swiss watchmaker’s argument that banning on-line gross sales protected its picture and thwarted counterfeiting, calling such a measure disproportionate. It additionally identified that opponents going through the identical dangers had “put options in place (notably technological)” that allowed them to promote on-line whereas preventing counterfeiting and off-network gross sales.
Given Rolex developed “a program for the web buy of pre-owned watches, whose authenticity it ensures” with one among its retailers, “an absolute ban on the web promoting of its merchandise can’t subsequently be justified,” it continued.
The Swiss watchmaker was nevertheless cleared of proscribing costs, because the watchdog discovered that “the proof within the case didn’t show Rolex France had restricted the pricing freedom of its licensed retailers.”
The case had been referred to the French physique by the Union de la Bijouterie Horlogerie skilled group, Marseille-based retailer Pellegrin & Fils and had resulted in raids on Rolex’s workplaces in France.
The Haute Autorité de la Concurrence holds Rolex France, Rolex Holding SA, Rolex SA and the Hans Wilsdorf Basis” collectively and severally liable” for cost of the high quality.
Along with the high quality, the French competitors watchdog imposed that Rolex inform all its licensed retailers of the choices and publish the abstract of its determination on its web site in French newspaper Le Figaro on-line and in print in addition to the Montres Journal quarterly.
