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The competition authority has fined Rolex France, Rolex Holding AG, Stiftung Hans Wilsdorf and Rolex AG, the competition watchdog announced in a statement published on Tuesday. The sentence was said to be “in connection with a communications and publications order”.
The Bijouterie Horlogerie Association and the company Pellegrin & Fils submitted the complaint to the competition authority. They consider that the provisions of the selective distribution agreement binding distributors to Rolex France constitute a vertical agreement that restricts competition. The authority rejected Rolex’s French subsidiary’s argument that the need to combat counterfeiting and parallel trading justified the ban on online sales.
The competition watchdog found that Rolex’s main rivals allowed their products to be sold online under certain conditions, despite facing the same risks. Antitrust watchdogs said those goals could be achieved through less restrictive methods.
The agency found that Rolex’s practices were serious. Because these would mean closing a sales channel to the detriment of consumers and retailers, online sales of luxury goods, including watches, have increased significantly over the last 15 years.
Rolex was one of the few manufacturers that did not have its own store for a long time, unlike competitors such as Swatch or the Geneva-based Richemont watch brands. But the world’s largest luxury watchmaker changed its strategy by purchasing Lucerne watch and jewelery retailer Bucherer last summer. Together with Bucherer, Rolex has also developed online sales of certified pre-owned watches.
The French competition authority also took notice: Rolex, together with one of its retailers, developed a program for the online purchase of used watches, the authenticity of which the company guarantees. “An absolute ban on the online sale of its products cannot therefore be justified,” the Competition Commission said.
Vontobel analyst Jean-Philippe Bertschy does not believe that Rolex’s business model will change as a result of the decision. The brand’s position and value are so strong that demand will remain high for the next few years, he said when asked by news agency AWP. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
