African trade commission stops Coca-Cola from setting prices for distributors

Following a probe by the Comesa Competition Commission (CCC), Coca-Cola will now suspend the clause that allows it to set price for distributors of its non-alcoholic drinks.

The competition Commission says the stipulation of price has had a tendency of subjecting consumers to higher prices.

“The stipulation of prices by a market leader was likely to lead to an inflation of prices of competing brands in the market where the incumbents set prices in a similar fashion as that of the market leader. The overall effect of this would be higher prices for consumers,” says CCC.

This follows investigation by the competition body against the beverage maker, since January last year.

The agency says it will continue to monitor the sector closely to ensure compliance in order to create fair competition.

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