Rolex is being penalised with a fine of €91.6 million for prohibitingADs from selling online for over 10 years

Rolex is facing a penalty of €91.6 million EUR from France's Haute Autorité de la Concurrence for preventing its Authorised Dealers (ADs) from selling its products online for over a decade.

This decision by the French competition authority underlines the significance of the ban, emphasising that it effectively blocked a key sales channel. This restriction was particularly impactful considering the growing trend of online sales for luxury items, including watches, over the past 15 years.

Although Rolex defended its policy as a means to prevent counterfeit products, the regulator found this argument unconvincing and disproportionate. It noted that several of Rolex's competitors had successfully implemented technological solutions to enable online sales while also addressing the issue of counterfeiting.

The regulator acknowledged Rolex's initiative to authenticate pre-owned watches sold online through a specific retailer. However, it ruled that this did not justify a complete ban on online sales of new Rolex products. Interestingly, Rolex was not charged with any penalties regarding allegations of price restriction, as the authorities did not find sufficient evidence to prove that Rolex France had limited the pricing freedom of its authorised retailers.

As of now, Rolex has not made any public statements regarding this matter. The Haute Autorité de la Concurrence expects the fine to be paid by Rolex France, Rolex Holding SA, Rolex SA, and the Hans Wilsdorf Foundation.