Luxury watch brand ``Rolex'' is fined approximately 14 billion yen because it is illegal to not sell online.
On December 19, 2023, the French antitrust authority 'Autorite de la Concurrence (French Competition Commission)' announced that the Swiss watch manufacturer '
Rolex Fined $100 Million for Thwarting French Online Watch Sales - Bloomberg
https://www.bloomberg.com/news/articles/2023-12-19/rolex-fined-100-million-for-thwarting-french-online-watch-sales
Rolex Is Fined $100 Million for Preventing French Online Watch Sales – Robb Report
Rolex fined $100 million for preventing its watches being sold online
https://usa.watchpro.com/rolex-fined-100-million-for-preventing-its-watches-being-sold-online/
Until now, Rolex has adopted a global policy of selling new products only at authorized physical stores, only introducing watches online, and not conducting online sales. It also restricted authorized Rolex dealers from selling new watches online for 10 years.
As an authorized Rolex dealer, Pellegrin & Fils had previously been negotiating with Rolex to allow them to sell their watches online. However, in 2013, Rolex terminated Pellegrin & Fils' official dealer contract for the reason 'to align with other partners regarding watch sales.'
In 2017, the Competition Commission launched an investigation into Rolex following complaints from French trade unions Union de la Bijouterie Horlogerie and Pellegrin & Fils. Additionally, in 2019, the Competition Commission raided Rolex's French branch.
Rolex states that the reason for banning online sales is ``to prevent the distribution of counterfeit watches and illegal
In fact, online retailer Watchfinder & Co. released a survey in July 2023 that found that half of the used luxury watch market is occupied by counterfeit Rolex watches. Rolex CEO Arjen van de Walle said, ``Rolex is the most coveted luxury watch brand in the world, and due to its high demand, it is also the brand with the most counterfeited products.'' I did.
On the other hand, the Competition Commission told Rolex, ``Over the past ten years, online sales of luxury goods, including watches, have boomed.Under these circumstances, Rolex has closed its marketing channels.'' This results in harm to consumers and retailers.' The Competition Commission fined Rolex €91.6 million and ordered Rolex retailers to inform them of the decision and post a summary of the decision on their official website for seven consecutive days within the next two months. I did.
Rolex has declined to comment on this decision by the Competition Commission.
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