DE BEERS GETS GREEN LIGHT: The European Union Commission has given De Beers the go-ahead to pursue its Supplier of Choice distribution strategy, aimed at spurring consumer demand for diamonds and fortifying the relationship between De Beers and its sightholders. The Brussels-based Commission said in a statement Tuesday it had decided not to oppose the SoC system, but that it would keep a “close watch” on the diamond market in order to ensure that the SoC does not lead to a restriction in the supply of rough diamonds to traders.
As reported, in 2001 the EC issued a statement of objection criticizing the SoC initiative on the basis that it was anticompetitive. De Beers controls 60 to 65 percent of the world’s diamond production. The SoC strategy will allow De Beers to favor sightholders who are specifically marketing-oriented and who have solid relationships with jewelry manufacturers, retailers and brands. SoC rules govern ethical standards as well.
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