One of the leading watchmaker, Swatch, unit that supplies parts to much of the watch market faces a possible sales ban next year by Switzerland’s Competition Commission (Weka), newspaper Schweiz is Wochenende reported on Saturday.
The paper stated, a decision on the matter is due next week, without specifying a reason for the possible ban.
According to Reuters, Swatch reached a deal with Weka in 2013 to progressively cut the number of watch movements – the tiny mechanisms that make a watch tick without the help of a battery – ETA sells each year so as to reduce its dominant market position.
Under the agreement, which runs to the end of 2019, ETA undertook not to serve any new customers.
Reuters reported that after 2019 the assumption was that other suppliers would have filled gaps ETA left in the market, leaving the Swatch unit free to resume selling to whoever it chooses.
Switzerland’s Competition Commission conducted a study to see if the market had opened up in the way it hoped, the paper said. It said the commission’s secretariat had recommended banning ETA from delivering mechanisms to clients in 2020 and the body would decide on its actions next week.