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tiffany-swatchZURICH: The world's biggest watchmaker Swatch said Monday that it has ended its partnership with Tiffany & Co as it accused the US luxury jeweller of blocking the development of the business.

The group added that it would file for damages against the US firm, "in compensation for the loss of planned long-term future business."

"Today Swatch Group terminated its cooperation contracts with Tiffany & Co," said the Biel-based group in a statement.

"This action became necessary following Tiffany & Co's systematic efforts to block and delay development of the business," it added.

Swatch founded Tiffany Watch Co. Ltd in 2008 to develop, produce and distribute Tiffany-branded watches under a partnership agreement with the US jeweller.

With the termination of the agreement, Tiffany Watch will begin winding down its business over two years.

Copyright AFP (Agence France-Presse), 2011

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