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Geneva--The Swiss Competition Commission has ruled that Swatch Group can reduce the amount of mechanical movements and movement components it supplies to third-party companies next year, though a final decision on Swatch’s future as a movements supplier is pending.

Swatch Group spokeswoman Béatrice Howald said the Swiss Competition Commission (Comco/Weko) started its investigation on June 6 and put interim measures in place until it makes a final decision. The measures allow Swatch Group to reduce the supply of mechanical movements to 85 percent and of regulating components of mechanical watch movements, or “assortiments,” to 95 percent. The reductions are based on 2010 delivery levels and will take effect in 2012.

Howald said a group of watchmakers appealed Comco’s decision to the Federal Administrative Court of Switzerland, an appeal the court rejected on Sept. 6. This was a “positive decision” for the Swatch Group, she said. 

Comco began its investigation at the behest of Swatch because Swatch, which manufacturers the movements that power about 80 percent of Swiss-made timepieces, wants to stop its compulsory supplies to third parties. Swatch reportedly believes that third-party companies have become too dependent on it for movements. 

Howald said the next step in the case is a Federal Administrative Court decision about the admissibility of the interim measures. That could come before the end of the year.