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ETA escapes further government regulation

  1. DSotW Jul 15, 2020

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    Source: https://www.admin.ch/gov/fr/accueil/documentation/communiques.msg-id-79857.html

    It's only available in German, Italian and French, so here's a DEEPL translation of the texts:

    COMCO Decision on ETA movements

    Bern, 15.07.2020 - The Competition Commission (COMCO) has imposed no new delivery obligations or restrictions on the Swatch Group after a thorough examination of the market for Swiss made mechanical movements. However, the Swatch Group subsidiary ETA remains in a dominant position.

    At the end of 2013, the COMCO approved an amicable agreement with Swatch Group. This agreement stipulated that the subsidiary ETA SA Manufacture Horlogère Suisse (ETA) had to deliver to its then customers defined quantities of mechanical movements until the end of 2019. The aim of the amicable agreement was to create incentives for sufficient competition to develop by the end of 2019 and for customers to find alternative sources of supply. After the expiry of this period, no delivery obligation was to remain.

    In view of indications that the market for Swiss made mechanical movements was not developing as expected, COMCO initiated a review procedure in November 2018. The in-depth examination carried out by the COMCO now shows that the market has reacted to the incentives of 2013 and that the conditions of competition have to a large extent been realised as expected. For example, ETA customers have expanded their sources of supply.

    On the basis of a broad analysis of the situation, COMCO concludes that no further obligations should be imposed on ETA. However, the Swatch subsidiary remains in a dominant position on the market for Swiss made mechanical movements and thus remains subject to cartel controls.

    The COMCO's decision can be appealed to the Federal Administrative Court