French Prosecutors Turn Up the Heat on EssilorLuxottica's Smart Glasses Bet
Published on 09/20/2026 at 07:11 | Editorial boerse-global.de
EssilorLuxottica's push into connected eyewear has run into a legal roadblock in its home market. French prosecutors and regulators have widened their scrutiny of the smart glasses developed jointly with Meta Platforms, according to Reuters, focusing on alleged breaches of data protection and privacy rules.
The regulatory attention lands on a product line that has become a central plank of the group's growth story. Citing Reuters, the Meta–EssilorLuxottica partnership commands an estimated 76% share of the global smart glasses market — a dominant position that inevitably places both partners at the center of any regulatory action targeting the category. Among the triggers for the probe are allegations that the devices were used in connection with sexual harassment.
Kepler Cheuvreux Pulls the Plug on Its Buy Case
The timing could hardly be worse for the Franco-Italian eyewear maker. On Thursday, Kepler Cheuvreux downgraded the stock from Buy to Reduce and slashed its price target to EUR 135 from EUR 244, pointing to mounting doubts about how the connected glasses market will develop and to execution risks tied to the segment.
Should investors sell immediately? Or is it worth buying EssilorLuxottica?
Not everyone on the sell side shares that gloom. UBS reaffirmed its buy recommendation on the shares on Friday, setting up a clear split among analysts over how much legal and privacy-related friction could slow the planned expansion of the partnership's products.
Shares Finish Near Their Yearly Floor
Investors voted with their feet. The stock closed Friday at EUR 138.70, down 1.9% on the day and just 0.5% above the 52-week low of EUR 138.00 touched during the same session. Year to date, the shares have shed 49% of their value.
The regulatory developments have unfolded against a backdrop of persistent governance friction. Leonardo Maria Del Vecchio, son of company founder Leonardo Del Vecchio, publicly called for a strategic realignment roughly three weeks after stepping down from a leadership role, following the sharp decline in the share price. About a week ago, the board of directors gave its unanimous backing to chairman and CEO Francesco Milleri and his management team, and 20 senior executives defended the group's direction in an internal letter reported by Bloomberg.
October Update in Focus
Attention now shifts to next month, when EssilorLuxottica is scheduled to publish an interim result for the third quarter of 2026 on October 20. That release should shed light on how the operating business has performed while the current disputes rumble on. Until the regulatory outlook for smart glasses becomes clearer, the group's growth strategy will remain under close examination in the markets.
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