Coca-Cola Amends Contracts After Hungarian Competition Inquiry

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The Hungarian Competition Authority (GVH) has concluded its investigation into Coca-Cola HBC Magyarország Kft., ending a procedure launched in 2019 over concerns that the company’s commercial practices in the beverage sector could restrict competition.

As part of the resolution, Coca-Cola HBC has committed to amend its distribution agreements with hospitality partners (HORECA) to include clear provisions ensuring that discounts and contract terms for various beverage categories operate independently of one another. The company will also revise promotional rules for mixed drinks, clarifying that HORECA partners are not required to use Coca-Cola soft drinks alongside alcoholic beverages to qualify for discounts.

In addition, Coca-Cola HBC will introduce regular internal competition law training to ensure full compliance with both the new commitments and general competition principles.

The GVH’s Competition Council assessed the commitments as appropriate and forward-looking, finding that they adequately address potential concerns and are likely to enhance competition in the market by broadening procurement options for HORECA businesses. Consequently, the GVH closed the case without finding an infringement, while terminating proceedings against Coca-Cola Magyarország Szolgáltató Kft., which was not involved in the conduct under review.

The GVH emphasized that these commitments are binding and will be subject to follow-up monitoring.