BRUSSELS, Oct 19 (AFP) - The European Union`s executive arm said Tuesday it had virtually wrapped up a settlement to a long-running dispute over anti-competitive retail practices by Coca-Cola.
EU Competition Commissioner Mario Monti said he personally was satisfied with commitments made by the US drinks giant to resolve the five-year-old anti-trust case.
Other companies will now have about a month to respond to say whether they are happy with the deal. If so, the commitments will become binding on Coca-Cola on pain of fines.
"The commitments entered into by Coca-Cola will level the playing field in the carbonated soft-drinks markets in Europe," Monti said in a statement.
"Thanks to the commission`s action, consumers will generally have more choice at cafes, pubs and shops and will, therefore, be in a position to choose on the basis of price and personal preferences rather than pick up a Coca-Cola product because it`s the only one on offer," he said.
To assuage the European Commission`s concerns, the US drinks giant agreed last month to change commercial agreements that required European retailers to give its brands the maximum visibility in their shops.
Coca-Cola has been conducting informal market testing to see if the new commercial practices are enough for the commission to close its book on an anti-trust investigation.
Under the deal reached in talks Tuesday between Monti and Coca-Cola chief executive Neville Isdell, the drinks company agreed to four main undertakings:
-- No more exclusivity arrangements. Retailers will be free to buy any fizzy soft drinks they like rather than being tied to a supply deal with Coca-Cola.
-- No target and growth rebates, which reward retailers for sticking to their purchasing deals with Coca-Cola.
-- No piggy-backing of weak Coca-Cola brands on strong ones. Retailers will be free to buy only best-selling Coca-Cola brands such as Coke or Fanta, rather than being forced to also buy weaker lines such as Sprite or Vanilla Coke.
-- Twenty percent of free space in Coca-Cola coolers. Where the company provides a free cooler to a retailer, the retailer will be free to use 20 percent of the cooler for products from another fizzy drink maker.