On Oct. 21, Swiss competition authorities approved an agreement that enables Swatch Group to reduce deliveries of mechanical movements to its competitors.
Under the new deal, Swatch will be obligated to continue delivering movements to competitors until Dec. 31, 2019. But the amount of those deliveries will decrease gradually—shrinking to 75 percent of current volume in 2014–15, 65 percent in 2016–17, and 55 percent in 2018–19.
Many of Swatch’s competitors rely on the dominant watchmaker for mechanical movements. The company has wanted to end this arrangement for some time, but until now, Swiss competition authorities had stood in its way.
The agreement also calls for all companies to be treated equally, and for special treatment be given to “hardship cases.” The commission also reserves the right to revisit the subject if market conditions change, it said.