Coke fined for abusing position

MILAN, DECEMBER 19: Italy8217;s anti-trust authority imposed a 16.1 million fine on Friday against Coca-Cola Co for abusing its dominant market position to exclude rival Pepsi from Italian stores. Coca-Cola8217;s spokesman in Italy said the company would appeal. The world8217;s biggest soft drink company faces investigations in other European and Latin American countries.

The latest decision stems from an investigation begun in 1998 of allegations made in complaints filed by Pepsi Co Inc. and supermarket chain Esselunga.

The anti-trust authority said Atlanta-based Coca-Cola and its Italian bottlers worked together to eliminate Pepsi from the Italian market by offering discounts and other incentives to retailers and wholesalers. It also said that Coca-Cola8217;s Italian subsidiary offered discounts to big distributors in exchange for display space or the favour of reducing display space for competitors8217; products.