The European Union's executive arm said 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 today between Monti and Irish born Coca-Cola chief executive Neville Isdell, the drinks company agreed to four main undertakings.
Firstly, there will be 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.
Secondly, there will be no target and growth rebates, which reward retailers for sticking to their purchasing deals with Coca-Cola.
Thirdly, there will be 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.
Lastly, 20% of free space in Coca-Cola coolers will be open for use for products from other fizzy drink makers.
