Switzerland’s anti-trust regulator has decided to allow the Swatch Group to supply mechanical watch movements to whomever it wants as part of a deal to crack down on potentially abusive business practices.
This content was published on
2 minutes
swissinfo.ch/ug
Investigations found that other manufacturers of mechanical watch movements – the mechanisms that make timepieces tick without a battery – have emerged over the past few years, according to competition commission president Andreas Heinemann.
“Alternative suppliers of Swiss-made mechanical watch movements have effectively won ground,” he said at a press conference on Wednesday. “This means watchmaking companies have become less dependent on Swatch’s ETA unit.”
However, the commission cautioned that ETA remained dominant due to its production capacity and must not abuse this position. The ruling is subject to appeal.
Long battle
Under the deal struck in 2013, ETA had to phase out movement deliveries due to its strong market position but would no longer have an obligation to supply parts to other watchmaking companies.
The regulator in January imposed restrictions on Swatch Group, saying it needed more time to determine the impact of market liberalisation. The announcement prompted angry reaction from Swatch which threatened to sue the authorities for damages.
It is the latest stage in a long-standing conflict between Switzerland’s biggest watchmaker and its main competitor in mechanical watch movements, Sellita, and comes amid concerns that Swatch Group could use the new freedom to win back customers from alternative suppliers.
Experts say such a risk may have increased during the coronavirus pandemic as collapsing watch demand led to production overcapacity across the watchmaking industry.
Earlier this week, Swatch Group announced a 46% decline in sales and its first ever net loss the first of the current year.
More
More
Infinite ways of telling time
This content was published on
With more than 130 timepieces from 1550 to today, heritage watches of great value are presented alongside crazy contemporary designs and enter into a dialogue that is thought-provoking, intriguing, awe-inspiring and often amusing. By watchmakers, but also by artists and designers, in materials as diverse as glass, paper, video and feathers, the selection offers a…
Basel diocese files five claims of sexual abuse in Swiss Catholic Church
This content was published on
The diocese of Basel has received 141 reports of sexual abuse since the publication of a sweeping study on violations in the Catholic Church by the University of Zurich in 2023.
Swiss president calls for open markets and stable institutions in WEF speech
This content was published on
Swiss President Karin Keller-Sutter was among speakers at the WEF in Davos to make the case for fair competition, a day after Donald Trump became the 47th president of the United States.
Swiss film in competition at the 75th Berlinale has a shot at Golden Bear
This content was published on
The feature film La Cache by Lausanne screenwriter and director Lionel Baier has a chance of winning the Silver or Golden Bear at the 75th Berlinale, festival organisers said on Tuesday.
Swiss politician who shot at image of Jesus resigns from Liberal Green Party
This content was published on
Sanija Ameti, who caused controversy after shooting at an image of Jesus and Mary last September, has resigned from the Liberal Green Party.
Swiss campaigners gather enough signatures to submit ‘responsible business’ initiative
This content was published on
The Swiss people are set to vote again on the corporate responsibility of multinationals after campaigners collected 183,661 signatures in 14 days for their new 'responsible business' initiative.
Several Swiss municipalities and banks hit by cyberattack
This content was published on
Russian hackers attacked the websites of several Swiss municipalities and banks on Tuesday, just as the World Economic Forum (WEF), got under way in Davos.
Music strengthens brain connections in premature babies, Swiss study shows
This content was published on
In premature babies, music strengthens connections in certain areas of the brain, according to a years-long study by the University Hospitals of Geneva (HUG).
WEF gives Crystal Award to Beckham, Yamamoto and von Fürstenberg
This content was published on
The World Economic Forum in Davos handed out awards to UNICEF ambassador David Beckham, Japanese architect Riken Yamamoto and women's rights activist Diane von Fürstenberg.
Swiss CEOs betting on a strong domestic market in 2025
This content was published on
Swiss business leaders are optimistic about 2025, despite a world in crisis, says a new survey by Pricewaterhouse Coopers.
This content was published on
Economics Minister Guy Parmelin and Foreign Minister Ignazio Cassis have welcomed Chinese Vice Premier Ding Xuexiang to Bern
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swatch offers compromise in watch movements deadlock
This content was published on
At the end of last year, the Competition Commission (Comco) temporarily suspended deliveries of watch movements from Swatch’s ETA unit to big rivals from January 1, 2020. Comco said it would review the case later this year, probably not before the summer. Swatch CEO Nick Hayek told the NZZ newspaperExternal link on Friday that his…
This content was published on
Switzerland’s largest watch maker, Swatch, must abide by a 2013 deal to slowly phase out the delivery of mechanical watch movements to rivals.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.