The Hungarian Competition Authority (GVH) has finalized its investigation into Coca-Cola's two subsidiaries in Hungary, resulting in commitments from Coca-Cola HBC Hungary Ltd. to modify its distribution contracts with HORECA partners. These changes aim to clarify terms and ensure compliance with competition law.

The investigation, initiated in 2019, focused on whether Coca-Cola HBC was leveraging its dominance in the carbonated drinks market to influence sales practices in the alcoholic and less popular non-alcoholic beverage markets. The GVH conducted thorough analyses, gathering data from partners and competitors, and performed unannounced inspections.

Findings revealed that Coca-Cola HBC employed various contracts with HORECA partners, which could mislead them into believing that purchasing multiple beverage types was necessary to obtain certain discounts. Concerns were also raised regarding promotional practices related to mixed drinks.

In response, Coca-Cola HBC proposed commitments to clarify its distribution agreements, ensuring that the terms for different beverage types are independent of each other. The company also pledged to provide regular internal training to ensure compliance with these commitments and general competition law principles.

The GVH deemed these commitments significant and forward-looking, enhancing beverage procurement options for HORECA units and promoting competition in the market. The authority accepted and mandated these commitments, closing the case without establishing any legal violations.

The GVH emphasizes the importance of adhering to the mandated commitments and will monitor compliance through follow-up investigations. The authority continues to focus on the food markets, particularly the beverage sector, to address potential violations.