Luxury watchmakers face EU competition investigation

European Union antitrust regulators are to investigate an allegation that several luxury watchmakers breached EU rules by refusing to supply spare parts to independent repairers.

The European Commission did not identify the companies but Switzerland's Swatch Group, the world's largest watchmaker, confirmed it was involved in the probe.

"It concerns almost the entire watch industry. We are confident regarding the outcome of this investigation," spokeswoman Beatrice Howald said.

A spokesman for Richemont, the other big Swiss watchmaking group, did not comment.

The European Commission had thrown out the complaint brought by the European Confederation of Watch & Clock Repairers' Associations (CEAHR) three years ago, but CEAHR appealed to the Luxembourg-based General Court, which annulled the decision in December last year.

"The Commission will now further investigate the allegations, in order to take account of the General Court ruling," the EU watchdog said on Friday.

In the complaint, CEAHR said the watchmakers' actions threatened to drive independent repairers out of business as there were no alternative sources for most spare parts.