COMCO Decision on ETA movements

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COMCO Decision on ETA movements

Post by koimaster » July 18th 2020, 11:23pm

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.
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Re: COMCO Decision on ETA movements

Post by Falstaff » July 19th 2020, 1:38pm

bbattle wrote:
July 19th 2020, 6:47am
So, is Swatch going to pull the plug on ETA movements for non-Swatch group watchmakers?
They've changed their minds several times since 2013 - "We won't sell to non-Swatch brands, we will sell, we might sell...."
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Re: COMCO Decision on ETA movements

Post by bbattle » July 19th 2020, 3:35pm

Watch enthusiasts need to know if now is the time to get their wish list watches while they still come with ETA movements. Who knows what they'll be worth if they have a Sellitta or heaven forbid, a non-Swiss movement in them.

And all those "in-house" movements that start with an ETA and then add some decoration here or there or maybe they add a jewell there and here. What about them? Are they squatting over fire-tempered blocks of clay? Or do they have sekrit deals keeping their pipelines safe?

Did this COMCO announcement really say as little as it sounded?
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Re: COMCO Decision on ETA movements

Post by Falstaff » July 20th 2020, 9:05am

bbattle wrote:
July 19th 2020, 3:35pm
Watch enthusiasts need to know if now is the time to get their wish list watches while they still come with ETA movements. Who knows what they'll be worth if they have a Sellitta or heaven forbid, a non-Swiss movement in them.

And all those "in-house" movements that start with an ETA and then add some decoration here or there or maybe they add a jewell there and here. What about them? Are they squatting over fire-tempered blocks of clay? Or do they have sekrit deals keeping their pipelines safe?

Did this COMCO announcement really say as little as it sounded?
The announcement is purposefully ambiguous so as to allow Swatch to do whatever they want. It's the "where does an 800 lb. gorilla sit?" syndrome, but with the current slump in the world watch market, I doubt Swatch will pass up any income stream.
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Re: COMCO Decision on ETA movements

Post by TemerityB » July 20th 2020, 10:59am

Falstaff wrote:
July 20th 2020, 9:05am
The announcement is purposefully ambiguous so as to allow Swatch to do whatever they want. It's the "where does an 800 lb. gorilla sit?" syndrome, but with the current slump in the world watch market, I doubt Swatch will pass up any income stream.
With the world stage as cloudy as it is, and nobody other than a few brands are selling dick? The should sell everything they make to anyone (reputable) that wants the stuff, and cut a price or two along the way. With today's real luxury goods consisting of toilet paper and hand sanitizer, the watch industry should take off the fucking cummerbund and think fairly, which I realize is a new concept for people with no sense of reality.
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