Coca-Cola and the European Commission reached an antitrust settlement today, with the cola giant escaping a fine but forced to change its practices.
The agreement ends a six-year investigation.
Euro-zone consumers "will be able to choose from a larger range of fizzy drinks at competitive prices," said the EC, the arm of the European Union charged with oversight of economic competition.
In a tersely worded statement, Atlanta-based Coca-Cola said it "welcomed" the decision. "We now have clarity regarding the application of European competition rules to our commercial practices," said Chairman and CEO Neville Isdell.
The EC said the company won't be able to enter into exclusivity arrangements, can't offer target or growth rebates and won't be able to use Coca-Cola's strongest brands to sell less popular products.
As an example, the EC said Coca-Cola won't be able to force retailers that want only to buy Coke from also having to buy Vanilla Coke.
In addition, the EC said that 20% of free space provided by Coca-Cola coolers will be able to be used for competing products -- for rival PepsiCo Inc. , a potential boost.
The decision covers the EU, Iceland and Norway and will be binding upon Coca-Cola until December 31st, 2010.
Coke could get fines of up to 10 per cent of worldwide revenue if it violates the agreement, the EC said.
Shares of Coca-Cola, a component of the Dow Jones Industrial Average, ended Tuesday down 23 cents at $43.68.