Swatch Group has announced that Weko, the Swiss Competition Commission, is reviewing whether there’s wiggle room within the 2013 agreement between the two parties to phase out the provision of mechanical movements by Swatch Group’s subsidiary, ETA.
Swatch Group is believed to be lumbered with a huge excess of movements in light of the downturn of the Swiss watch industry and the resulting decrease in demand for such movements.
Plus watch brands around the world had already been seeking alternatives to ETA after the 2013 deal with Weko was announced, or in some cases actually developing their own movement production capacities.
Subsequently, Swatch Group is keen to sell off its excess supply of stock, which is why it has opened up discussions with Weko again.
However, the pending decision from Weko is of concern to the aforementioned smaller movement makers who have been steadily building up their production capabilities in the last few years, because they have been expanding with the assumption that ETA would cease deliveries by 2019.