COMESA launches investigation into Coca-Cola’s alleged anti-competitive practices in Africa
AFRICA – The Coca-Cola Company is under investigation by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission for suspected anti-competitive practices involving the beverage giant and its African affiliates.
The inquiry raises concerns about Coca-Cola’s business operations within the COMESA region, which consists of 21 member states.
Willard Mwemba, the Commission’s Director and Chief Executive Officer, stated that COMESA “has reason to believe” that Coca-Cola may be involved in restrictive bottling and distribution agreements that could potentially hinder cross-border trade within the region.
These agreements are suspected of distorting competition and restricting trade between member countries, a violation of Article 16 of the COMESA regulations, which prohibits any agreements that could distort competition in the common market.
The investigation will focus on determining whether Coca-Cola’s agreements have an adverse effect on competition within the region and whether they violate COMESA’s regulations.
If the allegations are substantiated, Coca-Cola could face significant regulatory action to restore fair competition in the market.
In a statement from the Commission, it was emphasized that the inquiry is being conducted in accordance with Part 3 of COMESA’s regulations, which outline provisions for investigating conduct that may prevent or restrict competition in a substantial part of the common market.
However, Mwemba stressed that the commencement of the investigation does not mean that Coca-Cola has already been found in violation of the rules. The purpose of the inquiry is to ascertain whether the company’s practices are anti-competitive in nature.
As part of the investigative process, COMESA has invited stakeholders to submit written views and representations on the matter by November 14, 2024.
This invitation seeks to gather insights from all parties potentially impacted by Coca-Cola’s operations in the region, ensuring that concerns are fully considered.
The investigation follows another regulatory issue involving Coca-Cola in Nigeria.
In August, the Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria accused Coca-Cola Nigeria and the Nigerian Bottling Company (NBC) of misleading trade descriptions and unfair marketing practices.
The FCCPC’s investigation, which began in June 2019, revealed that Coca-Cola had altered the formulation of its Coke product by replacing regular sugar with non-nutritive sweeteners, without informing consumers.
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