Antitrust authorities put Coca-Cola under scrutiny

11/14/2023, 5:00 PM

The Federal Cartel Office is examining whether Coca-Cola has persuaded retailers to take over the full range of products through unjustifiable discounts.

Eulerpool News Nov 14, 2023, 5:00 PM

Coca-Cola is under scrutiny by the Federal Cartel Office due to possible anti-competitive discounting practices. The agency is investigating Coca-Cola Europacific Partners Germany GmbH (CCEP) and will take a closer look at the proceedings. Andreas Mundt, the head of the competition authority, explains that there are initial indications that Coca-Cola could distort competition through special discount conditions for German food retailers. CCEP, on the other hand, emphasizes that their business model is legal and based on a fair exchange of services.

As part of the procedure, the Federal Cartel Office will initially examine whether Coca-Cola holds a dominant position in the soft drinks market and is thus subject to special antitrust regulations. Furthermore, it will also investigate whether the conditions demanded by Coca-Cola comply with legal requirements. Specifically, the question will be pursued whether the company exerts influence on retailers using discounts and encourages them to offer and promote the entire product range of Coca-Cola - including the Fanta, Sprite, and Vio brands. These practices could lead to competitors being disadvantaged.

In the past, Coca-Cola has been involved in disputes with German retailers such as Edeka, particularly in price negotiations. Now, both Coca-Cola and companies in the beverage industry and the grocery retail sector have the opportunity to respond to the allegations. The Federal Cartel Office will continue its investigations based on these statements and decide whether further measures are necessary to ensure fair competition.

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