Swatch Group to receive 328 million euros from Tiffany & Co.

US-based jeweler Tiffany & Co., expressed their disappointment

this week, after being ordered by a Dutch arbitrage court to pay Swiss-watch making company Swatch 500 million dollars, or 328 million euros in damage claims due to a breach of contract. The fine Tiffany & Co. has been ordered to pay exceeds company profits made over the past year.

In 2007, Swatch Group, the world's largest manufacturer of watches signed a deal with luxury jewelry and accessories brand Tiffany & Co. to produce luxury watches for the company, under its brand name. However in 2011, Swatch Group ended its partnership with Tiffany & Co. and accused the company of delaying the promotion and sale of watches from their joint venture.

Swatch Group filed a lawsuit against Tiffany & Co. for damages and the lost future sales, as both parties agreed to share the profits from the watch sales equally. The US-based jeweler countered and accused the watch-making company of not honoring the terms of agreement, faulting them for not providing a sufficient distribution network for the luxury watches.

Earlier this week the court ruled in favor of Swatch Group and ordered Tiffany & Co. to pay the company 328 million euros in damage claims, as well as the trial costs, an estimated 6 million euros.