Jan 9 (Reuters) – Beverage giants Coca-Cola Co (KO.N) and PepsiCo Inc (PEP.O) 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.
The FTC reached out to large retailers, including Walmart Inc (WMT.N), 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.
FTC, Coca-Cola, Pepsi and Walmart did not immediately respond to Reuters’ request for comments.
Reporting by Shivani Tanna in Bengaluru; Editing by Sherry Jacob-Phillips
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