Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC probe of prestige watch makers closed, (Jul 29, 2014)
Organizations Mentioned:Watch & Clock Repairers' Assn.
By Jeffrey May, J.D.
It is unlikely that luxury/prestige watch makers violated European competition rules by withholding spare parts from independent watch repairers, the European Commission (EC) has decided. Today, the EC announced that it has closed a formal antitrust investigation of the unnamed watch manufacturers that was opened in August 2011.
The EC said that it conducted a “comprehensive investigation” into allegations that the watch makers improperly discontinued the supply of spare parts to independent watch repairers who did not belong to the manufacturers' respective official networks for repair and maintenance services. The European Confederation of Watch & Clock Repairers' Association (CEAHR) had contended that the manufacturers’ refusal to deal threatened to drive independent repairers out of business in several member states.
CEAHR first raised its complaint a decade ago. However, in 2008, the EC rejected the complaint for lack of community interest. The probe was resuscitated after the European General Court in 2010 annulled the EC's decision to reject the complaint. In deciding to close the investigation, the EC said that it took the General Court's judgment into consideration.
The EC rejected the complaint pursuant to Article 7(2) of Regulation 773/2004. Under Article 7, the EC provides a complainant with the reasons for rejecting a complaint and gives the complainant an opportunity to respond in writing. If the complainant's timely response does not lead the Commission to a different assessment of the sufficiency of the complaint, then the Commission will reject the complaint by decision.
Companies: Watch & Clock Repairers' Assn.
News: Antitrust