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U.S. FTC probes Pepsi, Coca-Cola over price discrimination - Politico

Published 01/09/2023, 07:45 PM
Updated 01/10/2023, 11:41 AM
© Reuters. FILE PHOTO: Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S., July 11, 2017.   REUTERS/Mario Anzuoni/File Photo
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(Reuters) -Beverage giants Coca-Cola (NYSE:KO) Co and PepsiCo (NASDAQ:PEP) Inc are under preliminary investigation by the U.S. Federal Trade Commission (FTC) over potential price discrimination in the soft drink market, Politico reported on Monday, citing sources.

The pricing strategies of both companies are being scrutinized under the Robinson-Patman Act, the report said.

The U.S. antitrust law prevents large franchises and chains from engaging in price discrimination against small businesses.

© Reuters. FILE PHOTO: Bottles of Coca-Cola are seen at a Carrefour Hypermarket store in Montreuil, near Paris, France, February 5, 2018.  REUTERS/Regis Duvignau/File Photo

The FTC reached out to large retailers, including Walmart (NYSE:WMT) Inc, for at least a month seeking data and other information on how they purchase and price soft drinks, two of the sources told Politico. Walmart is currently not a target in the investigation, according to the report.

The FTC declined to comment, while Coca-Cola, Pepsi and Walmart did not respond to Reuters' requests for comment.

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