The Court of First Instance has dismissed the actions brought by "The Coca-Cola Company" and "Coca-Cola Enterprises Inc." as inadmissible.
Coca-Cola Enterprises Inc. ("CCE"), is the world's largest bottler of the products of The Coca-Cola Company ("TCCC"). Since 1993 it has been the bottler of TCCC's products in Belgium, France and the Netherlands.
In 1997 the Commission declared an agreement between TCCC and Cadbury Schweppes plc ("CS") to be compatible with Community law on mergers of undertakings. Under the terms of the transaction CCE was to take over the activities of Coca-Cola and Schweppes Beverages Ltd ("CCSB").
However, in the grounds of its decision the Commission found that CCSB was in a dominant position on the British cola market.
In its decision the Commission also referred to the undertaking given by CCE to refrain, so long as it controlled CCSB, from certain forms of commercial practices considered illegal when employed by an undertaking in a dominant position.
TCCC and CCE claimed that the Court of First Instance should annul the decision because of the Commission's finding that CCSB was in a dominant position on the British cola market even though it had authorised the merger operation.
The Court of First Instance has held those applications inadmissible
The mere fact that the contested decision declaring the operation compatible with the common market does not affect the applicants adversely does not dispense the Court from examining the possible legal effects of the Commission's finding of a dominant position. That finding has been challenged by both undertakings because it affects or could affect their economic and commercial interests and might be relied on by competitors before national courts.
According to the Court the finding of a dominant position, even if liable in practice to influence the policy and future commercial strategy of the undertaking concerned, does not have binding legal effects. The view that there is a dominant position may alter over time under the influence of a number of changing and market-led factors. Any subsequent finding of abuse of that dominant position contrary to Community law could only be made after a fresh appraisal by the Commission or by a national court.
The Court takes the view that the undertaking given by CCE (to refrain from certain commercial practices) can only be the subject of an action for annulment if the Commission's decision was conditional upon that undertaking's being given. The Court considers that this was not the case: the undertaking has no binding legal effects as its breach would not affect the lawfulness of the decision authorising the operation or entail its revocation.
NB : an appeal against this decision, limited to points of law, may be brought before the Court of Justice of the European Communities within two months of its notification.
This press release is an unofficial document for media use which does not bind the Court of First Instance. It is available in French and English.
For the full text of the judgment, consult our Internet page www.curia.eu.int. at around 3 pm today.
For further information, contact Fionnuala Connolly, phone: (352) 4303 3355 fax: (352) 4303 2734.