Coca-Cola cooling down activities
Wednesday, July 27, 2005, 10:09
Coca-Cola Hungary Kft is promising a lot more moderate business activity in the future, and the company is reconsidering their contracts with retailers, business daily Napi Gazdaság reported. The measures taken were necessary since the mother company has been facing accusations of abuse of market power from the EU competition office. Coca-Cola Hungary promises not to sign exclusive contracts with and not to give discounts to retailers above a certain sales volume. The company also promises to keep 20% room in its branded refrigerators free for competitive products. Coca-Cola ended up choosing the self-regulation activity due to the fact that the EU competition office prefers handling cases through negotiation rather than fines.