Tiffany & Co ordered to pay US$500m to Swatch Group over failed joint venture
Swatch Group, the world’s biggest watch-maker, struck a deal in 2007 with Tiffany to manufacture luxury watches under the Tiffany brand, however, a dispute started in 2011 when Swatch cancelled the cooperation. Swatch Group said at the time that Tiffany had been trying to block and delay the venture, which was called Tiffany Watch Co.
“We were shocked and extremely disappointed with the decision of the majority of the arbitral panel,” said Tiffany chief executive Michael Kowalski, in a statement. Tiffany said the decision would not impact its ability to realise its existing business plans in the short or long term and that it would review its legal options.