Watches

Rolex Fined $100M in France Over Online Sales Ban

WatchesJan 04, 2024

Rolex Fined $100M in France Over Online Sales Ban

The luxury watch giant has two months to appeal the decision, which was handed down Dec. 19.

Rolex headquarters in Geneva, Switzerland
Rolex has until mid-February to appeal a recent decision by the Autorité de la Concurrence (French Competition Authority) to fine it approximately $100 million for its ban on online sales, which the authority has deemed unjustifiable.
Paris—A French regulatory body has fined Rolex €91.6 million (approximately $99.9 million) over its decade-long practice of preventing authorized Rolex dealers in France from selling its watches online.

The Autorité de la Concurrence, or French Competition Authority, announced the fine Dec. 19.

It followed a nearly seven-year investigation that began in January 2017 at the behest of French retailer Pellegrin & Fils, which was an authorized Rolex distributor from 1999 until the watch brand dropped it in 2013, and the Union de la Bijouterie Horlogerie, a union for workers in the French watch and jewelry industries.

The investigation included dawn raids on Rolex’s French offices in 2019.

In the end, the authority concluded that Rolex’s practice of prohibiting its retailers from selling its watches via mail order and the internet is “inherently restrictive of competition.”

“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,” it stated in its summary of the decision.

The authority rejected Rolex’s argument that prohibiting online sales helps it combat counterfeiting and prevent out-of-network sales, noting that the watch brand’s competitors face the same risks yet still allow their retailers to sell online.

They have “implemented (primarily technological) solutions” to help with these issues, the authority said.

It also noted Rolex’s development of its Certified Pre-Owned program for authorized dealers as another reason the brand cannot justify banning online sales, as the pre-owned watches are sold online and Rolex guarantees the authenticity of every single one of them.

“An absolute ban on the online selling of its products cannot therefore be justified,” the authority said.

Rolex’s CPO program launched at Bucherer stores in Europe in December 2022. The watches became available in the United States in May, beginning at Tourneau/Bucherer stores. 

 Related stories will be right here … 

While the authority ruled against Rolex in regard to its ban on online selling, it dismissed a second complaint filed in the case alleging that Rolex engaged in price fixing and would not allow French retailers to discount its watches.

In the full text of its decision, the authority stated that the facts of the case did not, “demonstrate that Rolex France SAS had invited its distributors to restrict their pricing freedom, nor that the distributors would, if necessary, have acquiesced to this invitation.” (Quote from decision translated from French.)   

A spokeswoman for the French Competition Authority said Rolex has two months to appeal the decision to the Paris Court of Appeal.

Rolex declined to comment on the decision or whether it plans to appeal.

If its stands, the fine will be levied on Rolex France, Rolex Holding SA, the Hans Wilsdorf Foundation, and Rolex SA.

In addition to the fine, the authority ordered Rolex France to send a summary of the decision to all of its authorized retailers.

The company also must publish the summary on its website within two months and keep it up for seven consecutive days, as well as publish it in the print and digital editions of Le Figaro, a daily newspaper, and the French watch magazine Montres.   

The French Competition Authority is an independent body that works to prevent the formation of monopolies and cartels, ensuring consumers have choices and pricing remains competitive, similar to the U.S. Federal Trade Commission’s Bureau of Competition.

The Latest

Ashley Zhang Jewelry 2025 Lunar New Year Snake Necklace
CollectionsJan 24, 2025
Piece of the Week: Ashley Zhang Jewelry’s Lunar New Year Necklace

The one-of-a-kind necklace was designed in celebration of the Chinese New Year, as 2025 is the Year of the Snake.

Graphic for “Predictions for the Year Ahead” webinar
Recorded WebinarsJan 24, 2025
Watch: Fine Jewelry Market Predictions for 2025

“My Next Question” guests Sherry Smith and Edahn Golan share their 2025 forecasts, from sales and marketing to what retailers should stock.

Ethical Gem Fair Tucson Anza Gems
SourcingJan 24, 2025
Ethical Gem Fair Heads Back to Tucson

The gemstone show is slated to take place at the Scottish Rite Cathedral.

Resolutions - 2025.jpg
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers

The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.

Ophelia Eve 15 mm yellow gold and diamond hoops
Policies & IssuesJan 24, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief

From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.

Weekly QuizJan 23, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Mugshots of Zacary Briggs, Aaron Hammond, Tre’von Anthony Neal, and Evan Puckett
CrimeJan 23, 2025
4 Men Arrested After Allegedly Plotting to Kidnap Jeweler

The suspects are accused of planning to kidnap a Miami jeweler and rob him of his cryptocurrency.

Loose diamonds from Namdia
CrimeJan 23, 2025
Security Guard Killed in Armed Robbery at Namibian Diamond Co.

Francis “Gosh” Eiseb, 58, was a senior protection officer for Namib Desert Diamonds, also known as Namdia, in Windhoek, Namibia.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Gemstone Trading Network by RapNet and AGTA
SourcingJan 23, 2025
RapNet, AGTA Partner to Launch Gemstone Trading Network

The online diamond and jewelry marketplace has expanded, introducing a new platform dedicated to colored gemstone trading.

Symposium 2025 Speakers
Events & AwardsJan 23, 2025
Plumb Club Announces Speaker Lineup for Symposium ‘25

The second annual learning forum for retailers is slated for March 13 at City Winery in Pier 57 in New York City.

Fancy Color Research Foundation
SourcingJan 23, 2025
Fancy Color Research Foundation Names New CEO

Roy Safit took over the role on Jan. 1.

National Jeweler columnist Sherry Smith
ColumnistsJan 22, 2025
On Data: How Did Independent Jewelers Fare in 2024?

Sherry Smith shares data on the year gone by, including the breakdown between natural and lab-grown diamond sales.

Los Angeles wildfires
Policies & IssuesJan 22, 2025
Jewelers Mutual Steps Up Aid for LA Jewelry Businesses

The company also is matching donations made to Jewelers of America and the Diamond Council of America’s Jewelers Relief Fund.

Jewelers of America 20 Under 40 graphic
Events & AwardsJan 22, 2025
JA Seeking Nominations for Its Next ‘20 Under 40’ Class

Now in its fourth year, the program is expanding to include a list of “20 Under 40” for jewelry suppliers.

Holiday wrapped gift boxes
SurveysJan 22, 2025
Holiday Sales Hit Record High, Says NRF

Core retail sales during the 2024 holiday season surpassed the National Retail Federation’s forecast.

Foundrae Reach for Life collection campaign
CollectionsJan 22, 2025
Foundrae’s New Collection Channels the Power of Now

The “Reach for Life” collection uses feather and arrow motifs to invite growth and inner curiosity.

National Jeweler columnist Peter Smith
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little Secret

Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.

Lord Jewelry brown and white diamond ring
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha Mousse

Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.

Diamonds Do Good
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board Members

Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.

Bucellati necklaces
FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday Quarter

The company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.

Picchiotti Classic Blue and Green Necklace
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ Necklace

The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.

Jameel Mohammed
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer Award

Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.

Gold jewelry boxes with Lux Bond & Green logo
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth Location

The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.

Elizabeth Taylor diamond line bracelet
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction

Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.

JCK open registration graphic
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for Registration

The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.

Iris Apfel
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel Auction

Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.

Macy’s Herald Square New York City store
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround Strategy

The closures are part of the retailer’s plan to close 150 locations over a three-year period.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy