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…
Train vs plane: would you take a direct train between London and Geneva?
Eurostar is planning to run direct trains from Britain to Germany and Switzerland from the early 2030s. Would you favour the train over the plane? If not, why not?
Zurich laboratory finds intestinal bacteria in coffee machines
This content was published on
Last year, the Zurich Cantonal Laboratory found defects in one in four samples of milk drinks from coffee machines. Too many intestinal bacteria were found in a number of samples.
SWISS Belgrade-Zurich flight forced to land in Germany
This content was published on
Swiss flight LX1413 from Belgrade to Zurich had to make an unscheduled landing today in Friedrichshafen, southern Germany.
New Swiss 3D simulation tool offers better landslide forecasting
This content was published on
A new 3D simulation tool is enabling much more accurate avalanche forecasts. The model, which proved its worth during the landslides in Brienz (GR) and Blatten (VS), could lead to more effective management of alpine risks.
Alleged leader of Kosovar terrorist group indicted in Switzerland
This content was published on
The Office of the Attorney General of Switzerland has brought charges against a Kosovar on suspicion of being the leader of the Swiss branch of a Kosovar terrorist organisation. He is also suspected of having been active in the management of the organisation in Kosovo.
Swiss glacier lake drains without causing flooding damage
This content was published on
The Faverges glacial lake on the Plaine Morte above Lenk in the Bernese Oberland drained over the weekend. There was no flooding or damage, the authorities announced on Monday.
Chihuahua leads Swiss rescue team to owner stuck in a crevasse
This content was published on
A Chihuahua helped to rescue a man on the Fee Glacier above Saas-Fee VS on Friday. It alerted a rescue team to its owner who had fallen into a crevasse.
Swiss bosses distance themselves from the United States
This content was published on
According to a survey of managers, Swiss companies are increasingly turning away from the USA and orientating themselves more towards Southeast Asia and the EU. This is the result of a recent survey.
This content was published on
The Fête de l'Epouvantail (scarecrow festival) is celebrating its 30th anniversary and returns to Denens in canton Vaud for its seventh edition from July 10-20.
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.