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Switzerland: Time running out for rivals to buy parts from Swatch

 |  October 27, 2013

Swiss regulators have reportedly permitted Swatch, the world’s largest watchmaker, to gradually decrease supplies of watch parts to its rivals, say reports.

Reports say the agreement between Swatch and competition regulator Weko was expected. Swatch holds a near monopoly on movements, the internal parts of a watch.

The company plans to cut deliveries of movements to 75 percent of what was delivered in 2009-2011. The agreement was announced by Weko.

Swatch will then cut deliveries even further to 65 percent of sales volume for 2016/2017, then 55 percent in 2018/2019.

According to reports, such a phasing-out of supply deliveries threatens a shortage for some competitors in the watchmaking business, though a clause in the agreement allows for some cushion of the cuts to smaller rivals.

Full content: Reuters

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