State Commission for Protection of Economic Competition has fined Coca - Cola Hellenic Bottling Company Armenia for abuse of dominant position with AMD 50 mln.

State Commission for Protection of Economic Competition President Artak Shaboyan told this during a meeting today stating that the committee has filed an administrative proceeding against Coca - Cola Hellenic Bottling Company Armenia following the request of Jermuk International Pepsi - Cola Bottler.

Proceedings showed that Coca - Cola created entry barriers for competing companies. In particular Jermuk International Pepsi - Cola Bottler noted that 11 companies operating in the territory of Dalma Garden Mall trade and entertainment complex refuse to sell Pepsi Cola beverage. The Commission found out that all 11 companies sell only Coca - Cola without credible justification.

The Commission's investigation also revealed that Coca - Cola has certain favorable conditions to businesses, giving out refrigerators on the condition of selling only its products. According to the study, the company has also highly differentiated approach to payment for goods and discount policy, which creates unequal and unfair conditions of competition between opponent companies.

Taking into account international experience the commission decided to suggest legislative amendments to the proposal in addition to the fine.

“Examining Coca – Cola’s behavior by the international practice and EU competition legislation, clear regulations were set according to which entities are entitled to use 20 % of the refrigerators given by Coca- Cola to store goods of other companies with their preference”, stated the commission adding that based on this experience they will present draft amendments to the Armenian law on Trade and Services.