Swiss competition authority Weko has said that the Swatch Group will not be given permission to cut movement supplies to other watchmakers to 70% of the 2010 level, as it requested, according to a report in the Wall Street Journal,
However, Swatch will be able to reduce supplies to 75% of the 2010 level, starting in 2014.
While Swatch currently produces approximately 60% of the movements used by Swiss watchmakers, the Swiss Cartel Act is in place to stop the company cutting supplies. Swatch has been trying to reduce the level at which it has to supply critical components to rival Swiss watchmakers for the last few years.
According to the report in the Wall Street Journal, Weko last week rejected Swatch’s latest request to cut the volume of movements it supplies to other watchmakers to 70% of the 2010 level from 85%. Instead, the newspaper report explained that Weko has said that it can reduce supplies to 75% of the 2010 level, starting in 2014.
Further reductions in Swatch’s provision of hair springs and other components were also ruled out by Weko.
The Swiss competition authority also said that it is willing to continue negotiations with Swatch about reducing movement supplies to a greater extent after 2014.