Swatch Deal

[dealmaker]

Swatch Deal

Switzerland's antitrust regulator has banned Swatch—the world's biggest watchmaker—from selling watch movements to other large companies, from January 1 to sometime in mid-2020, when the watchdog (pardon the pun) will make a final decision on a long-running competition case. This is bad news for Swatch and big-name customers such as Richemont, Chopard and Breitling. Bloomberg

 

[Cuddles]

I'm not sure I understand what the issue here is. Swatch is about the only big house outside Japan or China making movements. Are they under pricing the other Swiss houses so severely they can't compete?

 

[ETJ]

Holding Valjoux and ETA movements off the market intentionally.

 

[emojitrading]

https://www.watchpro.com/swatch-gro...iss-competition-commissions-decision-in-full/

https://www.watchpro.com/swatch-gro...tion-commission-blocking-eta-sales-from-2020/

Quite an interesting turnaround in Swatch's position from ten years ago.