97/540/EC: Commission Decision of 22 January 1997 declaring a concentration to be compatible with the common market and the functioning of the EEA Agreement (Case No IV/M.794 - Coca-Cola/Amalgamated Beverages GB) (Only the English text is authentic) (Text with EEA relevance)

• Articles: 2

Article 1

The concentration notified on 9 August 1996 by Coca-Cola Enterprises Inc. relating to the acquisition of Amalgamated Beverages Great Britain Ltd., the parent company of Coca-Cola & Schweppes Beverages Ltd is declared compatible with the common market under Article 8 (2) of Council Regulation (EEC) No 4064/89 and with the functioning of the EEA Agreement.

Article 2

This Decision is addressed to:

Coca-Cola Enterprises Inc.,

PO Box 723040,

2500 Windy Ridge Parkway,

Atlanta,

Georgia 31339-0040,

USA.

Done at Brussels, 22 January 1997.

For the Commission

Karel VAN MIERT

Member of the Commission

(1) OJ No L 395, 30. 12. 1989, p. 1; corrected version OJ No L 257, 21. 9. 1990, p. 13.

(2) OJ No C 243, 9. 8. 1997.

(3) In the published version of this Decision, some information has been omitted or replaced by ranges, pursuant to Article 17 (2) of Regulation (EEC) No 4064/89 concerning non-disclosure of business secrets.

(4) OJ No 13, 21. 2. 1962, p. 204/62.

(5) Case IV/M.582 - Orkla/Volvo.

(6) Case IV/M.190 - Nestlé/Perrier.

(7) Case IV/M.623 Kimberly-Clark/Scott Paper. In this case the Commission's decision referred to a number of reasons for and against regarding Great Britain and Northern Ireland as being only one market, many of which apply in the present analysis.

(8) A report on the supply by manufacturers of carbonated drinks in the United Kingdom (HMSO 1991).

(9) Those undertakings may be summarised as follows:

(i) TCCEC undertakes to implement a compliance programme in this regard to ensure compliance with the EEC competition rules; and

(ii) TCCEC undertakes to comply with its specific obligations as to its commercial behaviour in each Member State concerning cola-flavoured soft drinks. TCCEC specifically undertakes not to include the following provisions in Agreements concluded or renewed with customers . . . and to abstain from unilateral restrictive practices having the equivalent effect:

(a) Exclusivity provisions: provisions that obligate a customer not to purchase other colas or provisions that grant the customer a rebate or other advantage on condition that the customer does not purchase such beverages;

(b) Target Rebates: provisions which condition the availability or extent of rebates granted to a customer on the customer reaching purchase targets of products individually set for the Customer for periods exceeding three consecutive months;

(c) Combined Target Rebates: provisions under which a target rebate (to the extent) permitted under (b) above is paid on the basis of the customer reaching total aggregate purchases of both Coca-Cola Megabrand products and any other beverages;

(d) Tying provisions: provisions that condition the supply of Coca-Cola Megabrand products or the availability or extent of rebates or other advantages upon the customer's purchase of one or more additional beverages along with the purchase of one or more Coca-Cola Megabrand products.

The undertaking provides for the possibility for TCCEC to consult with the Commission as to whether a deviation from this undertaking would be appropriate if in the specific circumstances of a specific agreement, adherence to this undertaking would result in serious and substantial commercial hardship to TCCEC.