Wednesday June 19, 2024

German competition authority initiates proceedings against Coca-Cola

Published : 14 Nov 2023, 21:30

  DF News Desk
Coca-Cola logo pictured on the administrative building of the beverage manufacturer. Carmen Jaspersen / picture alliance / dpa.

Germany's top competition authority has initiated abuse proceedings against Coca-Cola Europacific Partners Germany due to possible anti-competitive discount structures, reported dpa.

"There are indications of Coca-Cola possibly restricting the opportunities of other companies to compete based on how it structures its terms offered to German food retailers," Federal Cartel Office head Andreas Mundt said.

"We will now take a closer look at this."

The company, which is responsible for bottling and distributing all beverage brands owned by The Coca-Cola Company in Germany, confirmed the investigation when asked by dpa.

"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.

According to the competition authority, it will first examine whether Coca-Cola has a dominant position in 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 fulfil the requirements.

This will involve the question of whether companies in the food retail sector could have been induced in an unauthorized manner to purchase Coca-Cola's entire product range, place it on shelves and advertise it, thereby putting other beverage manufacturers at a disadvantage.