Comco Supports Reduction Of Mechanical Movement Delivery

It has been rumored for a long time that the Swatch Group will reduce the number and types of movements supplied to third parties. Recently, the rumor has changed. The Swiss Competition Commission (COMCO) rejected its secretariat and Swatch A gentleman agreement between Group Swatch Group, which has predicted that the delivery of the number and type of movements of Swatch Group will be callback.
Nevertheless, the Swiss Competition Commission agreed in principle that Swatch Group should be allowed to reduce the delivery of mechanical movements in a gradual manner and under certain conditions. However, the committee believes that it is too early to consider reducing the number of movements delivered.
The Swiss Competition Commission has returned the agreement signed in the spring of 2013 to the Secretariat for reconsideration.
The Swiss Competition Commission agrees in principle that Swatch Group can gradually reduce movement delivery, but requires ETA SA to treat all customers in the same way in principle. The committee has issued interim measures to require Swatch Group to guarantee that the deliveries to customers in 2012 and 2013 will be 85% of the 2010 deliveries, and that these deliveries can be reduced by 10% in 2014 (that is, 75% of the reference amount). Any new agreement between the Secretariat and the Swatch Group should be resubmitted to the committee for review and approval.
The Swiss Competition Commission believes that under the current market environment and market development uncertainties, it is too early to reduce the delivery of movement types, because these are an important part of mechanical movements. The committee believes that it should decide whether to agree to reduce the number of deliveries after observing market developments in the next few years. Interim measures (delivered at 95% of the reference amount) will remain in effect until the end of 2013.
This article is an official press release from the Swiss Competition Commission. The original language is French, German and Italian.