A Rolex on your hand indicates your time is right and bright. But the same cannot be said about Rolex, which was fined $100 million in France over online sales restrictions. France’s antitrust agency is after the Swiss luxury watch brand for pursuing an illegal decade-long crackdown on distributors selling the Swiss firm’s luxury watches online. The French competition authority fined Rolex France jointly with Rolex Holding SA, the Hans Wilsdorf Foundation, and Rolex SA.
This doesnt pose well for the sought-after label as it may entail closing a marketing channel, to the disappointment of consumers who are already finding it hard to find the much-loved timepiece and even for retailers. The enormous fine also commands Rolex’s French division to notify its retailers of the decision and to publish a summary of it on its website within two months and for one whole week. The decision follows industry complaints and raids by the authority. The French competition authority has pointed out an interesting contrast: While Rolex keeps its prestigious timepieces off online shelves, its equally elite competitors are embracing the digital era by allowing their luxury watches to be sold online, albeit with certain conditions. The authority suggests that achieving brand goals doesn’t necessarily mean restricting competition — there could be a more style-savvy way to play the market game.
Rolex has been slapped with a staggering $100 million fine in France as it prohibited its distributors from selling its watches online
