SEC Filing: Coca Cola - Update on appeal against Greek competition authority's non-compliance fining decision
( April 2, 2009, 11:58 GMT | Official Statement) -- MLex Summary: Coca Cola has announced in a filing to investors that the Greek Supreme Administrative Court on 4 November 2009 will hear appeals brought in connection with the Greek competition authority’s June 2006 decision to impose a daily penalty fine against the company for non-compliance with a 2002 antitrust decision. The appeals were brought by the competition authority, Coca Cola and one of its competitors against a previous Court of Appeal judgment partly annulling, partly upholding the non-compliance decision.Extract: The Greek Competition Authority issued a decision on 25 January 2002, imposing a fine on the Company of approximately €2.9m for certain discount and rebate practices and required changes to the Company’s commercial practices with respect to placing coolers in certain locations and lending them free of charge. On 16 June 2004, the fine was reduced on appeal to €1.8m. On 29 June 2005, the Greek Competition Authority requested that the Company provide information on its commercial practices as a result of a complaint by certain third parties regarding the Company’s compliance with the decision of 25 January 2002. On 7 October 2005, the Company was served with notice to appear before the Greek Competition Authority. On 14 June 2006, the Greek Competition Authority issued a decision imposing a daily penalty of €5,869 for each day that the Company allegedly failed to comply with the decision of 25 January 2002. On 31 August 2006, the Company deposited an amount of €8.9m, reflecting the amount of the fine and applicable tax, with the Greek authorities. As a result of this deposit, the Company increased the charge to its 2006 financial statements in connection with this case to €8.9m. The Company also incurred consulting fees and additional expenses of €0.4m in connection to this case. On 23 November 2007 the Court of Appeals partly reversed and partly upheld the decision of the Greek Competition Authority reducing the amount of the fine to €5.9m. The reduction of the fine of €2.8m was recognised in the Company’s 2007 income statement. The Company has appealed the decision of the Court of Appeals to the extent it upholds the fine, to the Supreme Administrative Court of Greece. The Company believes that it has substantial legal grounds for its appeal against the judgment of the Court of Appeals. The Greek Competition Authority and one of the Company’s competitors have also appealed the decision of the Court of Appeals. All three appeals (i.e. the Company’s and those of the Greek Competition Authority and one of the Company’s competitors) will be heard on 4 November 2009 (following their postponement at the originally set hearing of 4 February 2009)....
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