Cartel Office initiates abuse proceedings against Coca-Cola
Coca-Cola's business practices have called Germany's top competition watchdogs into action. Abuse proceedings have been initiated against Coca-Cola Europacific Partners Deutschland GmbH due to possible anti-competitive discount structures, the Federal Cartel Office announced in Bonn on Tuesday.
"There are indications that Coca-Cola could hinder other companies in their competitive opportunities by structuring its conditions vis-à-vis German food retailers, in particular the discount structure," explained the head of the authority, Andreas Mundt. "We will now investigate this further."
The company confirmed the investigation when asked by the German Press Agency. "We are convinced that the proven business model of Coca-Cola Europacific Partners in Germany with a balanced price and conditions concept is legally compliant. It is based on a fair principle of performance and consideration," said Vice President Andrea Weckwert.
Do special requirements apply?
In the proceedings, the Federal Cartel Office has stated that it will first examine whether Coca-Cola has a dominant position on the soft drinks market and is therefore subject to special antitrust regulations. It will also investigate whether the conditions demanded by Coca-Cola from German food retailers comply with the requirements. This will also involve the question of whether food retail companies could have been illegally induced to purchase Coca-Cola's entire product range, place it on the shelves and advertise it. This could have put other beverage manufacturers at an anti-competitive disadvantage.
Coca-Cola Europacific Partners handles the bottling and distribution of all of the company's beverage brands in Germany on behalf of the Coca-Cola Company. The product range includes the Fanta, Sprite and Mezzo Mix brands.
- The investigation by the Federal Cartel Office could potentially impact other consumer goods companies, as they may also be affected if Coca-Cola's discount structures are found to be anti-competitive in the retail trade of food and beverages.
- If Coca-Cola is found to have abused its dominant position in the soft drinks market, it could face penalties and have to adjust its pricing and discount structures to ensure fair competition within the retail trade of consumer goods, specifically food and beverages.
Source: www.dpa.com
