Italy’s antitrust authority has launched a formal investigation into Swatch Group and Citizen, focusing on whether the two watchmakers unlawfully influenced retail pricing in the Italian market. The probe looks at possible violations of competition rules that prohibit manufacturers from fixing or limiting the prices charged by independent retailers.

According to regulators, the investigation centres on whether Swatch and Citizen imposed minimum resale prices or discouraged discounts through contractual terms, monitoring systems, or pressure on authorised dealers. Such practices, known as resale price maintenance, are illegal under EU and Italian competition law when they restrict fair competition and consumer choice.

Officials are reviewing agreements with retailers, internal communications, and pricing policies to determine whether dealers were free to set their own prices or were effectively forced to follow recommended price levels. If proven, the conduct could have limited price competition both in physical stores and online.

Both Swatch Group and Citizen have confirmed they are cooperating fully with the investigation and have stated that they believe their commercial practices comply with existing regulations. At this stage, the opening of the probe does not imply wrongdoing, but it could lead to penalties or required changes to business practices if violations are found.

The case comes as Italian and European regulators intensify oversight of pricing behaviour in the fashion, luxury, and consumer goods sectors, particularly where brand power may influence how products are sold to end customers.