Re: Rolex Pays $750,000 to Settle Antitrust Charges

Hi Folk,

Would someone please explain the current situation of obtaining Rolex parts
in USA.
I've givern up on Rolex repairs & some other brands - Cartier etc...
Can a small independant watchmaker actually order & receive Rolex parts.
Carefull with replies - I understand Rolex will sue the pants off anyone who
defames them. Cant understand why anyone would do that ;)

TimeNZ



"SWG" <swisswatchguy@xxxxxxxxxxx> wrote in message
news:1141812571.173263.47580@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Rolex Pays $750,000 to Settle Antitrust Charges

Rolex Watch U.S.A. Inc. has agreed to pay $750,000 for engaging in
anticompetitive practices.

The penalty is part of a settlement with the Department of Justice that
resolves Rolex's alleged violations of a 1960 consent decree that
prohibited U.S. importers of Swiss watches and watch parts from
engaging in anticompetitive practices in the U.S. watch industry.

"The rule of law requires companies to abide by a court's lawful orders
or pay the consequences. Even when a company believes that a court's
order is no longer necessary to serve its original purposes, the
appropriate recourse is to ask the court to modify its order, not to
flout it," said Thomas O. Barnett, Assistant Attorney General in charge
of the Department's Antitrust Division.

During its investigation, the Justice Department determined that, as a
result of significant changes in the watch industry during the past 45
years, the decree is no longer necessary to protect competition and
therefore should be terminated.

In its filing, the Justice Department said that certain provisions of a
Rolex policy statement violate the decree by placing restrictions on
the use, resale, and pricing of watch parts purchased from Rolex.

According to the pepartment, Rolex's policy is to not sell watch parts
to independent watch repair facilities or watchmakers unless the
watchmakers agree that they will not use the parts in any watch that
has non-Rolex parts or accessories.

Rolex's policy also prohibits watchmakers from reselling spare watch
parts under any circumstance and from charging an excessive markup for
watch parts used in repairs.

The department alleges that these provisions of Rolex's policy violate
the terms of the 1960 decree.

In 1954, the Department filed an antitrust complaint alleging a
wide-ranging conspiracy between Swiss and U.S. watch companies to fix
prices, terms, and conditions of the sale of watches and watch parts,
to restrict the manufacturing of watches and watch parts in the United
States, and to control the export of watches and watch parts into the
United States.

More than 20 defendants were named in the complaint, including The
American Rolex Watch Corporation, which today is known as Rolex Watch
U.S.A. Inc.

On March 9, 1960, just prior to trial, the United States and 11 of the
defendants, including Rolex, entered into a consent decree that
resolved the complaint's antitrust concerns.

Under the decree, the defendants are prohibited from placing certain
restrictions on the use of watch parts or watchmaking machines
purchased from the defendants. The decree also prohibits the defendants
from entering into certain agreements that fix or control the terms or
conditions on which watches, watch parts, or watchmaking machines
purchased from the defendants may be resold.

Rolex Watch U.S.A. Inc. is the U.S. subsidiary of the Swiss watch
manufacturer Montres Rolex S.A. Rolex Watch U.S.A. imports, distributes
and services Rolex watches, stopwatches, pocket watches, and clocks,
and maintains a network of Rolex watch dealers in the United States.


Rolex Pays $750,000 to Settle Antitrust Charges


March 1, 2006
Rolex Watch U.S.A. Inc. has agreed to pay $750,000 for engaging in
anticompetitive practices.

The penalty is part of a settlement with the Department of Justice that
resolves Rolex's alleged violations of a 1960 consent decree that
prohibited U.S. importers of Swiss watches and watch parts from
engaging in anticompetitive practices in the U.S. watch industry.

"The rule of law requires companies to abide by a court's lawful orders
or pay the consequences. Even when a company believes that a court's
order is no longer necessary to serve its original purposes, the
appropriate recourse is to ask the court to modify its order, not to
flout it," said Thomas O. Barnett, Assistant Attorney General in charge
of the Department's Antitrust Division.

During its investigation, the Justice Department determined that, as a
result of significant changes in the watch industry during the past 45
years, the decree is no longer necessary to protect competition and
therefore should be terminated.

In its filing, the Justice Department said that certain provisions of a
Rolex policy statement violate the decree by placing restrictions on
the use, resale, and pricing of watch parts purchased from Rolex.

According to the pepartment, Rolex's policy is to not sell watch parts
to independent watch repair facilities or watchmakers unless the
watchmakers agree that they will not use the parts in any watch that
has non-Rolex parts or accessories.

Rolex's policy also prohibits watchmakers from reselling spare watch
parts under any circumstance and from charging an excessive markup for
watch parts used in repairs.

The department alleges that these provisions of Rolex's policy violate
the terms of the 1960 decree.

In 1954, the Department filed an antitrust complaint alleging a
wide-ranging conspiracy between Swiss and U.S. watch companies to fix
prices, terms, and conditions of the sale of watches and watch parts,
to restrict the manufacturing of watches and watch parts in the United
States, and to control the export of watches and watch parts into the
United States.

More than 20 defendants were named in the complaint, including The
American Rolex Watch Corporation, which today is known as Rolex Watch
U.S.A. Inc.

On March 9, 1960, just prior to trial, the United States and 11 of the
defendants, including Rolex, entered into a consent decree that
resolved the complaint's antitrust concerns.

Under the decree, the defendants are prohibited from placing certain
restrictions on the use of watch parts or watchmaking machines
purchased from the defendants. The decree also prohibits the defendants
from entering into certain agreements that fix or control the terms or
conditions on which watches, watch parts, or watchmaking machines
purchased from the defendants may be resold.

Rolex Watch U.S.A. Inc. is the U.S. subsidiary of the Swiss watch
manufacturer Montres Rolex S.A. Rolex Watch U.S.A. imports, distributes
and services Rolex watches, stopwatches, pocket watches, and clocks,
and maintains a network of Rolex watch dealers in the United States.


Rolex Pays $750,000 to Settle Antitrust Charges


March 1, 2006
Rolex Watch U.S.A. Inc. has agreed to pay $750,000 for engaging in
anticompetitive practices.

The penalty is part of a settlement with the Department of Justice that
resolves Rolex's alleged violations of a 1960 consent decree that
prohibited U.S. importers of Swiss watches and watch parts from
engaging in anticompetitive practices in the U.S. watch industry.

"The rule of law requires companies to abide by a court's lawful orders
or pay the consequences. Even when a company believes that a court's
order is no longer necessary to serve its original purposes, the
appropriate recourse is to ask the court to modify its order, not to
flout it," said Thomas O. Barnett, Assistant Attorney General in charge
of the Department's Antitrust Division.

During its investigation, the Justice Department determined that, as a
result of significant changes in the watch industry during the past 45
years, the decree is no longer necessary to protect competition and
therefore should be terminated.

In its filing, the Justice Department said that certain provisions of a
Rolex policy statement violate the decree by placing restrictions on
the use, resale, and pricing of watch parts purchased from Rolex.

According to the pepartment, Rolex's policy is to not sell watch parts
to independent watch repair facilities or watchmakers unless the
watchmakers agree that they will not use the parts in any watch that
has non-Rolex parts or accessories.

Rolex's policy also prohibits watchmakers from reselling spare watch
parts under any circumstance and from charging an excessive markup for
watch parts used in repairs.

The department alleges that these provisions of Rolex's policy violate
the terms of the 1960 decree.

In 1954, the Department filed an antitrust complaint alleging a
wide-ranging conspiracy between Swiss and U.S. watch companies to fix
prices, terms, and conditions of the sale of watches and watch parts,
to restrict the manufacturing of watches and watch parts in the United
States, and to control the export of watches and watch parts into the
United States.

More than 20 defendants were named in the complaint, including The
American Rolex Watch Corporation, which today is known as Rolex Watch
U.S.A. Inc.

On March 9, 1960, just prior to trial, the United States and 11 of the
defendants, including Rolex, entered into a consent decree that
resolved the complaint's antitrust concerns.

Under the decree, the defendants are prohibited from placing certain
restrictions on the use of watch parts or watchmaking machines
purchased from the defendants. The decree also prohibits the defendants
from entering into certain agreements that fix or control the terms or
conditions on which watches, watch parts, or watchmaking machines
purchased from the defendants may be resold.

Rolex Watch U.S.A. Inc. is the U.S. subsidiary of the Swiss watch
manufacturer Montres Rolex S.A. Rolex Watch U.S.A. imports, distributes
and services Rolex watches, stopwatches, pocket watches, and clocks,
and maintains a network of Rolex watch dealers in the United States.

http://www.consumeraffairs.com/news04/2006/03/rolex.html



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