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…
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Swiss investigate four people linked to Russian oligarch
This content was published on
The Office of the Attorney General of Switzerland is investigating four individuals linked to Russian oligarch Suleyman Kerimov.
Swiss government scrambles to deal with egg shortage
This content was published on
From September 1, more eggs intended for consumption may be imported into Switzerland. In allowing this, the government wants to secure the supply of eggs for consumers.
This content was published on
Agricultural research sees new development opportunities for Swiss sparkling wines in the face of declining wine consumption. In a survey, half of consumers expressed a willingness to pay more for local products than for foreign ones.
Locarno spotlights filmmakers from South America and Caribbean
This content was published on
The Open Doors section of the Locarno Film Festival has named the winners for 2024. The spotlight is on the South American and Caribbean regions.
Storm paralyses trains to popular Swiss tourist resort
This content was published on
The railway line between Zweilütschinen and Grindelwald in central Switzerland is expected to remain closed until Friday following heavy rains.
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.