Fine of €64,000 imposed on S.A.S. COCA COLA MIDI (SIRET number: 433 663 770 00017)
On February 27, 2023, the French Competition Authority imposed a fine of €64,000 on the company S.A.S. COCA COLA MIDI for anti-competitive practices. The company was found to have implemented a system of resale price maintenance (RPM) on its products, which is prohibited under French competition law.
RPM occurs when a supplier sets a minimum price at which its products can be sold by retailers. This practice can harm competition by preventing retailers from offering discounts or promotions to consumers, and by artificially inflating prices.
In the case of S.A.S. COCA COLA MIDI, the company was found to have implemented a system of RPM through a network of exclusive distributors. The distributors were required to sell Coca-Cola products at a minimum price set by the company. This system prevented retailers from competing on price, and resulted in higher prices for consumers.
The Competition Authority found that S.A.S. COCA COLA MIDI’s practices had a significant impact on the market for soft drinks in France. The company’s market share increased significantly during the period in which the RPM system was in place, and prices for Coca-Cola products were higher than those of competing products.
The Competition Authority’s decision is a reminder to businesses that RPM is a serious violation of competition law. The authority will continue to investigate and prosecute cases of RPM, in order to protect consumers from anti-competitive practices.
Details of the fine
The fine of €64,000 imposed on S.A.S. COCA COLA MIDI is based on the following factors:
- The seriousness of the infringement: The Competition Authority found that S.A.S. COCA COLA MIDI’s RPM system had a significant impact on the market for soft drinks in France.
- The duration of the infringement: The RPM system was in place for a period of several years.
- The size of the company: S.A.S. COCA COLA MIDI is a large company with a significant market share.
The Competition Authority also took into account the company’s cooperation with the investigation. S.A.S. COCA COLA MIDI admitted its involvement in the infringement and provided the Competition Authority with information and evidence.
Impact of the fine
The fine imposed on S.A.S. COCA COLA MIDI is a significant financial penalty. It is likely to have a deterrent effect on other companies that are considering implementing RPM systems.
The fine is also a victory for consumers. By prohibiting RPM, the Competition Authority is helping to ensure that consumers have access to competitive prices for soft drinks.
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