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Amazon Has a Luxury Problem

Swatch Group executives earlier this year were planning to sell some of the Swiss conglomerate’s higher-end watches through Amazon.com Inc.

But after months of talks, the two companies hit a wall. Swatch, whose brands include Longines, Omega and Blancpain, demanded a commitment that Amazon proactively police its site for counterfeits and unauthorized retailers. Amazon refused, according to Swatch Chief Executive Nick Hayek, putting a deal between the two on ice.

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