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Atlanta (pte054/23.06.2005/16:28) - The six-year dispute between Coca Cola http://www.coca-cola.com and the European Union over the soft drink company's aggressive marketing tactics has ended with a settlement, EU officials announced on Wednesday. The EU warned Coke that if it violates the agreement and continues with its anti-competitive behaviour, the fizzy drink giant will be slapped with heavy fines.
At the peak of the investigation European regulators raided Coke system offices in England, Belgium, Germany for information on anti-competitive tactics - a complaint voiced by Coke's rival Pepsi.
Among other points from the settlement, Coke is no longer allowed to make small businesses, restaurants and shop owners sign deals to exclusively carry Coke products. The company was known to force its customers to sell its smaller brands as a prerequisite for getting the bigger labels, and also to forbid other drink labels to be stored in Coke-branded fridges.
The agreement, which is binding until 2010, is effective in the 25 EU-member states, as well as in Iceland and Norway.
"Consumers will be able to choose from a larger range of fizzy drinks at competitive prices," said Neelie Kroes, competition commissioner for the European Commission.
Pepsico is happy with the ruling. The company's spokesman Dick Detwiler said: "After an exhaustive investigation, the commission uncovered serious antitrust concerns... Now, retailers across Europe will be free to stock a choice of soft drinks, which is great news for consumers."
Analysts have said that the ruling is not expected to have much of an impact on Coke's sales volume.
Coke's biggest and most important markets in Europe are Great Britain, Germany and Spain. European Union sales account for about one-fifth of Coca Cola's worldwide sales.
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