Antitrust regulators in the EU have commenced a preliminary investigation into The Coca-Cola Company, the European Commission has announced.
Coca-Cola shop shelf
Photo: pxhere.com
A Commission spokesperson confirmed that questionnaires had been sent out as part of the investigation.
"The preliminary investigation is ongoing. We cannot comment on or predict its timing or outcome," she said, without providing any further details.
The soft drinks giant confirmed that it had received a formal request for information.
"While we will co-operate fully with the Commission, it would be inappropriate for us to comment further while the process is ongoing. We abide by European competition law, as well as all other applicable laws and regulations," a Coca-Cola spokesperson said.
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Retail and wholesaler lobbying group EuroCommerce - whose 5.4 million-member companies includes Tesco, Lidl, Ikea, Amazon, and Carrefour, along with many small businesses and several national and supranational associations - said that certain sales practices conducted by some multinational brands were a cause for concern.
In a statement, the group's Director-General Christian Verschueren said: "We have for many years pointed to the problems our sector faces with the makers of 'must-have' products using their market power to impose unilateral conditions and limit competition to their advantage.
"Coming on top of other recent investigations into the practices of large multinational manufacturers... we are pleased that the Commission has taken up this investigation, which we believe will shed further light on how large suppliers use their market power to the disadvantage of consumers and with no benefit to farmers."
He added that the investigation may be connected with allegations about the practice of tying or bundling - whereby Coca-Cola made it compulsory for shops to buy less-popular products - such as Vanilla Coke or Sprite - in order to be able to stock big-sellers such as regular Coke or Fanta.
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The news of the investigation was first reported in German retail and consumer goods industry publication Lebensmittelzeitung.
This is not the first time the world's most-recognisable beverage company has been under investigation in the EU. In 2004, the bloc's antitrust authorities concluded a five-year investigation into the company's sales practices, which was launched in response to a complaint made by Coca-Cola's historic rival Pepsi.
The two sides reached an agreement whereby Coca-Cola would end its practice of forcing retailers to sign "exclusivity agreements", which enabled the company to monopolise the market, by excluding major competitors, as well as the practice of tying or bundling less popular products to its biggest names.
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