Antitrust case against Coca Cola in Europe since the 1990s - PowerPoint PPT Presentation

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Antitrust case against Coca Cola in Europe since the 1990s

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Pepsi filed because of unfair distribution deals. INTRODUCTION ... Coke has too many barriers in place that restrict Pepsi from selling in the European Market ... – PowerPoint PPT presentation

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Title: Antitrust case against Coca Cola in Europe since the 1990s


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INTRODUCTION
  • Antitrust case against Coca Cola in Europe since
    the 1990s
  • Pepsi filed because of unfair distribution deals

5
INTRODUCTION
Statistics
  • Coke gt50 of European Market
  • Pepsi ltgt 10 European Market

6
Antitrust
  • Antitrust laws in the US and other countries are
    designed to combat restrictive business practices
    and to encourage competition

7
Examples of Antitrust Agencies
  • Federal Trade Commission USA
  • Fair Trade Commission Japan
  • European Commission Europe

8
Examples of Antitrust Agencies
  • Federal Trade Commission USA
  • Fair Trade Commission Japan
  • European Commission Europe

9
Problems
  • Coke has too many barriers in place that restrict
    Pepsi from selling in the European Market
  • Examples
  • No guest beverages
  • Sales requirements/Growth Targets

10
Coca Colas Potential Resolution
  • Discard rebates
  • 20 shelf space to competitors products
  • Guest beverages
  • Terminate exclusivity

11
How will the EC decide if Coca Colas proposed
solution to its antitrust lawsuit is fair?
  • Sending out letters to Cokes Rivals
  • Testing markets reaction

12
Implications on Global Trade
  • Enforcing settlement decision
  • If not followed EC makes settlement decision
    tougher where applicable
  • If not followed future suits can arise

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Recommendations for International Marketing
  • The EC should accept Cokes settlement because we
    feel that it is fair for global competition

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Why Settle?
  • Avoids years of costly litigation
  • An antitrust lawsuit will negatively affect brand
    name of coca cola

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Summary
  • Ongoing since 1990
  • Coke is trying to compromise
  • EC is overseeing to ensure fair settlement
  • If cokes proposed settlement is not good enough
    the EC will enforce tougher conditions and allow
    rivals to sue for violations in national court

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Beverages were supplied free of charge Please
refrain from questions we will probably not know
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