In Surprise Ruling, COMCO Halts Swatch Group Escapement Cuts
Switzerland's Competition Commission (COMCO) has ruled that it would be premature to allow the Swatch Group to reduce supplies of assortments (i.e. the regulating organ of a mechanical movement: escape wheel, pallet lever, balance wheel and balance spring) that it sells to Swiss watch brands outside the group. While favoring a continued reduction in supplies of mechanical watch movements, COMCO halted further cuts in assortments supplies. It rejected a proposed plan for a gradual reduction of both movements and assortments through 2021 and 2025 respectively. The surprise ruling is the latest development in a drama that has gripped the Swiss watch industry for two years. At issue is whether the Swatch Group, the world's largest watch company and the dominant supplier of mechanical movements and parts to Swiss watch brands, can legally reduce those supplies. In June 2011 the Swatch Group declared its intention to cut supplies and asked COMCO to investigate the matter. At Swatch's reque

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