Conditions of the sale of watches and watch parts

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 watch making 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 watch making machines purchased from the defendants may be resold. In addition, the defendants are prohibited under the decree from entering into certain agreements that fix or control the markup or the maximum or minimum price at which watches, watch parts, or watch making machines purchased from the defendants may be resold.

Today the Department also filed with the court a memorandum consenting to termination of the decree, subject to notice and an opportunity for public comment. Nevertheless, Rolex must still comply with the terms of the consent decree until and if the decree is terminated. 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 20defendants were named in the complaint, including The American Rolex Watch Corporation, which today is known as Rolex Watch U.S.A. Inc.