The topic of the 21st episode of 8Past10 Watch Talks was the latest, and probably the most dramatic, update of the seesaw battle between the Swatch Group and Switzerland’s Competition Commission (COMCO).
As an independent federal authority, one of COMCO’s main tasks is: “monitoring dominant companies for signs of anti-competitive conduct.” Unsuprisingly, the watch industry monopoly Swatch Group appears right in their radar.
In the mid of December 2019, COMCO’s secretariat has announced that the Swatch Group subsidiary ETA be banned from supplying mechanical watch movements in 2020. And the final decision is postponed until summer 2020.
The announcement quickly sent a ripple of tumult through the watch industry.
What is ETA doing? And why are they so important to watch brands?
ETA (full name: ETA SA Manufacture Horlogère Suisse) is specialised in designing and manufacturing ébauche movement for both Swatch Group’s own watch brands, but also many outside brands like Tudor, IWC and Breitling.
What is the ébauche movement? Referencing to Hodinkee’s explanation:
In modern watchmaking, ébauche is a complete movement kit, minus the escapement components (which may also be supplied to the final assembler). For much of the history of watchmaking in Switzerland, a watchmaker would obtain an ébauche as well as other components, including the escapement, balance and balance spring, etc., from suppliers before finishing, assembling, and regulating the completed watch.
