The Autorité de la concurrence fines Rolex €91,600,000 for prohibiting its authorised retailers from selling its watches online

Following referrals from the Union de la Bijouterie Horlogerie and Pellegrin & Fils, as well as dawn raids, the Autorité de la concurrence has fined Rolex France (jointly and severally with Rolex Holding SA, the Hans Wilsdorf Foundation and Rolex SA) for prohibiting its retailers from selling Rolex watches online for more than ten years.

The Autorité considers that the terms of the selective distribution agreement between Rolex France and its retailers constitute a vertical agreement that restricts competition. The Autorité rejected Rolex France’s argument that the ban on online selling was justified by the need to combat counterfeiting and parallel trade. Finding in this respect that Rolex’s main competitors, who face the same risks, authorise the online selling of their products under certain conditions, it considered that these objectives can be achieved by means that are less restrictive of competition.

It has imposed a penalty of €91,600,000 on Rolex France SAS, together with a disclosure and publication injunction.

However, the Autorité rejected the objection concerning the resale prices imposed on its retailers, which had been notified to Rolex. It considered that the evidence in the case did not prove that Rolex France had restricted the pricing freedom of its authorised retailers.