The Coca-Cola Company is under scrutiny as the Common Market for Eastern and Southern Africa (COMESA) Competition Commission has launched an investigation into suspected anti-competitive practices involving the beverage giant and its African affiliates.

The investigation, announced on Monday, has raised concerns about Coca-Cola’s business operations within the COMESA region.

Willard Mwemba, the Commission’s Director and Chief Executive Officer, revealed that COMESA "has reason to believe" Coca-Cola may be engaged in restrictive bottling and distribution agreements, potentially limiting cross-border trade among member states.

The probe, according to Mwemba, is focused on understanding the impact of these agreements on the region's competitive landscape.

“The commission will, by the provisions of part 3 of the regulations, conduct an inquiry to determine whether the alleged conduct has as its object or effect the prevention, restriction of competition in the common market or in a substantial part of it,” read a statement from the Commission.

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Central to the investigation is Article 16 of the COMESA regulations, which prohibits any agreements that could distort competition and restrict trade between member countries.

Should Coca-Cola be found in violation, it could face significant regulatory actions aimed at restoring fair competition within the market.

However, Mwemba stressed that the inquiry does not imply guilt.

The investigation is still in its early stages, and no definitive conclusions have been reached regarding Coca-Cola's actions.

“The commission will evaluate the conduct of the company to ascertain its effects in the common market,” the statement added, highlighting the need for a thorough examination.

In light of the investigation, the Commission has invited stakeholders to submit their written views and representations on the matter by November 14, 2024.

This invitation aims to gather broader insights and ensure that all parties affected by Coca-Cola’s operations have the opportunity to voice their concerns.

As the investigation unfolds, the outcome could have far-reaching implications, not only for Coca-Cola but also for the regulatory framework governing major corporations operating in Africa.

The case underscores the growing importance of fair competition and transparent trade practices in the region’s evolving market dynamics.