COMESA probes Coca-Cola for possible anti-competitive behaviour across the regional market
Coca-Cola is under investigation for possible uncompetitive behaviour through its bottling and distributor agreements across markets in Eastern and Southern Africa.
The COMESA Competition Commission said it suspects the company’s agreements with some African bottling plants and distributors may exclude rivals from key market routes. If true, this would violate regulations that protect competition in the regions.
“The Commission has reason to believe that The Coca-Cola Company has concluded restrictive bottler’s and restrictive distribution agreements or arrangements with affiliates in Africa which affect trade between Member States,” the commission said in a statement on Tuesday.
The regulator will assess Coca-Cola’s actions to evaluate their impact on the Common Market and determine if they violate competition rules. The investigation will focus on whether the alleged conduct has the intention or effect of limiting competition in the region or in a significant part of it.
The commission stressed that the investigation does not imply that Coca-Cola’s actions have breached any regulations.
Through Coca-Cola Beverages Africa, the company serves South Africa, Kenya, Ethiopia, Mozambique, Tanzania, Uganda, Namibia, Ghana, Botswana, Zambia, Eswatini, Lesotho, Malawi, Mayotte and the Comoros. In Zimbabwe, Delta Beverages bottles and distributes Coke under licence from the Coca-Cola Company, which has sold the drink in the country for over 75 years.
COMESA Member States are Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Eswatini, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Uganda, Zambia and Zimbabwe. NewZwire
