Tribunal to hear complaint against Coca-Cola

In a statement last Wednesday, 5 May 2010, the Tribunal said the hearing would take place from 10 - 14 May.

Rukanani has accused Coca-Cola of actions amounting to a restrictive vertical practice in contravention of the Competition Act.

Rukanani has also alleged that Coca-Cola was involved in minimum resale price maintenance, or vertical price-fixing.

The matter was referred to the Competition Commission on 28 January 2008.

The Commission investigated the complaint and decided not to refer Rukanani's complaint to the Tribunal.

Rukanani referred the complaint directly to the Tribunal on 20 February 2009.

Rukanani is a wholesale distributor of liquor, block bricks and soft drinks in Bela-Bela, Limpopo.

It submitted that in December 2007 it applied to Coca-Cola Fortune to be a wholesale distributor of beverages supplied by Coca-Cola.

However, Rukanani was allegedly informed that another wholesale distributor, Iqbal Taladia trading as North West Soft Drinks had offered to supply it with soft drinks.

Rukanani insisted on being directly supplied by Coca-Cola, which soon after this accepted its application, appointed it as a distributor and allocated it an outlet number.

A first order was delivered on 31 December 2007 and a second order on 4 January 2008 when another order was placed because of demand.

Coca-Cola failed to deliver the next day - as was promised - and when Rukanani asked why, it was told the delivery would cost more than the previous orders.

Rukanani refused to accept the inflated price and informed Coca-Cola that it wanted to continue with the initial arrangement.

Coca-Cola allegedly replied that there would be no delivery unless it accepted the new price - which was the same as that charged by Taladia.

Rukanani said no more deliveries had been made since then.

Rukanani claimed that Coca-Cola's actions contravened the Competition Act.

Source: Sapa