France’s antitrust division has fined Rolex 91 million Euros (over $100 million dollars) for restricting its authorized retailers in France from selling Rolex timepieces online.
Rolex has had a longstanding policy — effective worldwide — of not allowing any of its authorized to sell its timepieces online, so this move by France’s Autorité de la Concurrence could set a precedent that is repeated in other countries.
Even Patek Philippe, who has always had the same policy of not allowing online sales of its timepieces, in an unprecedented move, temporarily relaxed the rules in 2020, during Covid, and allowed online sales, to ensure sales could take place at a time when stores were shuttered around the world, which Professional Watches broke the news on.
The Autorité de la Concurrence said this: “The Autorité considers these practices to be serious, as they amount to closing a marketing channel, to the detriment of consumers and retailers, when the online distribution of luxury products, including watches, has been booming over the past 15 years. Given their duration (more than ten years) and nature, the Autorité is imposing a penalty of €91,600,000. Because of the capital, organizational, and legal links between Rolex France and Rolex Holding SA, Rolex SA, and the Hans Wilsdorf Foundation, the Autorité holds the latter companies jointly and severally liable for the payment of the fine.
In addition, the Autorité is ordering Rolex France to send a summary of the decision to all its authorized retailers. It must also publish a summary of this decision on its website within two months and for seven consecutive days.
Lastly, the Autorité orders Rolex France to publish a summary of the decision in the print and digital editions of Le Figaro and in Montres Magazine.”
The amount — though not insignificant — will not make much of an impact on Rolex’s billions in annual revenue and profit, however, what will Rolex do about selling Rolexes in France? Will they comply and offer Rolex timepieces for sale online in France? And if so, how will that affect its other markets?
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