Monopoly: Phoenix Beverages and Quality Beverages in Competition Commission Viewfinder

Hunting situations alleged monopoly in violation of the Competition Act 2007 is continuing. This time, the Competition Commission is interested in the Phoenix Beverages Ltd. (PLB) and the Quality Beverages Ltd (QPL).

The objective of the commission is to check if the supply to retailers of refrigerators by these two operators distort the rules of fair competition.

"Our concern is directed towards the retailers of PLB and QBL which, because of a lack of space, can install only one refrigerator. Moreover, because of limited budgetary resources, small retailers can not buy refrigerators.Consequently, they rely on refrigerators provided by operators. If they impose restrictions on the nature of the products to be stored in the refrigerators, it would result in a situation where the drinks produced by other competitors and that are manufactured by a small number of companies are likely to be thrown out market, "said a statement from the Competition Commission.

The document specifies that at the present day, the Executive Director of the Competition Commission estimates that there are sufficient arguments to estimate that PBL and QBL enjoy a monopoly situation as defined in Article 46 ( 1) (b) of the Competition Act 2007. Meaning that alone, these two operators control 70% of the market potential and refrigerated beverage which are intended for immediate consumption. Moreover, the conditions attached to the mode of use of refrigerators and QBL imposed by PBL and small retailers may violate provisions of the law on monopoly.

For its part, the direction of Phoenix Beverages ensure its full cooperation with the Competition Commission."Phoenix Beverages reiterates its commitment to its customers and maintains its respect for the law. She cautions that Phoenix Beverages collaborates fully with the Competition Commission, "said Richard Wooding in a statement, Chief Executive of Phoenix Beverages.

It indicates that in the retail sector, customers often ask companies that manufacture and supply of chilled products also provide a refrigerator. "Phoenix Beverages has invested heavily in their refrigerators so that consumers can have the best possible experience for its products."