The US Federal Trade Commission (FTC) is investigating Coca-Cola Co and PepsiCo for potential price discrimination in the soft drink market, Politico reported on Monday, citing sources.
According to the report, both companies’ pricing strategies are being scrutinised under the Robinson-Patman Act.
The antitrust laws of the United States prohibit large franchises and chains from engaging in price discrimination against small businesses.
According to the report the FTC contacted large retailers, including Walmart, for at least a month, seeking data and other information on how they purchase and price soft drinks. According to the report, Walmart is not currently a target of the investigation.
Reliance recently acquired the once-iconic brand Campa Cola, which was launched in the 1970s to fill the void left by Coca-exit Cola’s from India. It was the entry of Coca-Cola, along with its battle for market share with archrival PepsiCo in the early 1990s, that led to Campa’s decline and eventual extinction.
That has now come full circle, with Reliance purchasing the brand from its Delhi-based parents Pure Drinks Group for a pittance of Rs 22 crore a few months ago, only to pit it against Coke and PepsiCo.
The cola drink is currently available at Reliance Group retail outlets at a significant discount compared to offerings from Reliance’s American competitors.