EssilorLuxottica, the world's largest eyewear company, has taken legal action to dismiss consumer lawsuits accusing it of monopolizing the designer frames and prescription lenses markets. The company, formed in 2018 through a €58 billion merger between Italian eyewear giant Luxottica and French lens maker Essilor, has asked U.S. District Judge Mary Kay Vyskocil in Manhattan to reject what it terms "misguided" allegations.
The lawsuits, initially filed in 2023 and subsequently consolidated in Manhattan, claim that EssilorLuxottica and its affiliated entities violated U.S. antitrust laws. Consumers allege that the company used a series of acquisitions and restrictive sales and distribution agreements to dominate the eye products market unlawfully.
In its defense, EssilorLuxottica argues that the plaintiffs have not presented sufficient facts to support their claims. The company's court filing states, "Their claims amount to nothing more than a contention that building a successful company over many decades is unlawful. That is not an antitrust violation; it is good business."
EssilorLuxottica operates in over 150 countries and owns major retail outlets such as LensCrafters, Sunglasses Hut, and For Eyes. The company also possesses a portfolio of over 70 popular eyewear brands, including Ray-Ban, Persol, Oliver Peoples, and Oakley. With more than 180,000 employees worldwide, EssilorLuxottica produces over 500 million lenses annually and has a significant presence in the smart glasses market.
The consumer lawsuits seek class action status for direct and indirect purchasers of EssilorLuxottica products. Plaintiffs allege that the company has created a network of anticompetitive agreements, providing consumers with only "an illusion of choice in a competition-free ecosystem." They claim that EssilorLuxottica has captured over half of the nearly $8.5 billion U.S. retail market for premium eyewear.
In response to these allegations, EssilorLuxottica maintains that it operates in a highly competitive industry. The company argues that the plaintiffs' "grab bag" of antitrust claims fails to demonstrate that it is excluding potential rivals. To support its position, EssilorLuxottica points to new market entrants like Warby Parker, stating that they "have quickly built substantial eyewear businesses under their own new brands."
It's worth noting that EssilorLuxottica has faced antitrust scrutiny in multiple countries due to its significant market presence. The company's market capitalization exceeds €70 billion as of 2024, and it invests over €300 million annually in research and development. EssilorLuxottica has also been expanding its e-commerce capabilities and focusing on digital transformation in the eyewear industry.
As the legal proceedings continue, the outcome of this case could have significant implications for the eyewear market and antitrust regulations in the industry. The court's decision will likely be closely watched by both consumers and competitors in the eyewear sector.
"Their claims amount to nothing more than a contention that building a successful company over many decades is unlawful. That is not an antitrust violation; it is good business."
This case highlights the ongoing debate between business success and market dominance, raising questions about the balance between innovation, growth, and fair competition in the global eyewear industry.