Malaysia Competition Commission found no evidence of resale price maintenance by Coca-Cola
28 January 2020
On 7 October 2019, the Malaysia Competition Commission (“MyCC”) released a statement confirming that the MyCC did not find any evidence of an infringement of section 4(1) of the Competition Act 2010 by Coca-Cola Bottlers (Malaysia) Sdn. Bhd. and Coca-Cola Refreshments Malaysia Sdn. Bhd. (collectively referred to as “Coca-Cola”) in relation to a price increase notice issued by Coca-Cola to supermarkets and hypermarkets in Peninsular Malaysia. The notice, which was issued by Coca-Cola in July 2018, included a recommended resale price at which various Coca-Cola beverages were to be sold to retailers, and a recommended consumer price to the consumers.
The MyCC initiated an investigation against Coca-Cola upon receiving a ministerial directive to do so. The MyCC’s investigation focused on whether the notice issued by Coca-Cola restricted supermarkets and hypermarkets, including their retailers, from determining the resale prices independently. Upon completion of its investigation, the MyCC concluded that there were no evidence to suggest that Coca-Cola had induced supermarkets and hypermarkets to adhere to the recommended resale price via incentives or promotional measures, and the prices charged by supermarkets and hypermarkets in the Klang Valley region varied accordingly. The MyCC concluded its investigation and issued a decision of non-infringement under section 39 of the Competition Act 2010 to Coca-Cola.