Swiss watchmaker Swatch Group says it is terminating its partnership with U.S. luxury jeweler Tiffany & Co.
Swatch accused New York-based Tiffany of breach of contract citing "systematic efforts to block and delay development of the business."
The Swiss company said in a statement Monday that it would seek damages against Tiffany for loss of future business.
Swatch signed a deal in 2008 to develop, produce and distribute Tiffany-branded watches.
Tiffany couldn't immediately be reached for comment.
Biel-based Swatch recently reported half-year sales of 3.36 billion Swiss francs ($3.78 billion) and a net profit of 579 million francs.
Shares in Swatch were down 2.1 percent at 346.80 francs on the Zurich exchange.