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Abuse of Dominance

In: Other Topics

Submitted By gunjanj
Words 393
Pages 2
Title:
Abuse of Dominant Position in reference to Coca Cola and PepsiCo in Europe and U.S

ABSTRACT
This article focuses at the actions of Coca-Cola and Pepsi in America and Europe since both of theirs’ inception. The article is divided in three different parts.
Part I – In this part of the article, author has made an attempt to briefly discuss about the history of incorporation of both the companies i.e., PepsiCo and Coca Cola. The saga began in 1886, when John S. Pemberton developed the original recipe for Coke. Pepsi-Cola was created in 13 years later by pharmacist Caleb Bradham.
Part II - This part of the article focus upon the anti competitive practices in which coca cola and PepsiCo are indulged in and also the Soda War. It is not unknown that both Coca Cola and Pepsi have been competing with one another in the global soft drinks industry for many years.
Coca-Cola advertising has historically focused on wholesomeness and nostalgia for childhood. Coca-Cola advertising is often characterized as "family-friendly. Pepsi adverts often focused on celebrities choosing Pepsi over Coca-Cola, supporting Pepsi's positioning as "The Choice of a New Generation."
Part III – Third part of this article explores the “Cola Wars” litigation under European laws concerning dominant abuse of market position. Also discussion has been made on the advertising policing of both the companies slandering each other. The European Commission (EC) has developed a very powerful competition policy, which is divided into 2 different elements. First, the EC prohibits every agreement between companies which limit competition and second, the EC prohibits every abuse of a dominant position by a firm within a market (European Commission).
A number of Pepsi and Coke challenges wherein participants with a blindfold are asked to taste Coke and Pepsi in plain cups and rate the better of the…...

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