KUALA LUMPUR (Oct 7): There is no evidence of infringement in relation to a price increase notice of Coca-Cola beverages issued to supermarkets in Peninsular Malaysia prior to the implementation of the Sales and Services Tax (SST) in September 2018, says the Malaysia Competition Commission (MyCC).

The commission said this today after concluding an investigation into the notice issued by Coca-Cola Bottlers (Malaysia) Sdn Bhd and Coca-Cola Refreshments Malaysia Sdn Bhd in July 2018.

"MyCC found that the prices charged by supermarkets and hypermarkets in the Klang Valley area varied and it could be lower or higher than the recommended resale or consumer price.

"MyCC found that Coca Cola did not infringe Section 4 of the Competition Act 2010," the competition watchdog's chief executive officer Iskandar Ismail said in a statement.

The commission's investigation on Coca-Cola, which came on the heels of a ministerial directive, examined whether the notice issued has the ability to restrict supermarkets and hypermarkets, including their customers, from determining their resale prices independently.

The notice had apparently contained a recommended resale price at which various Coca-Cola beverages were to be sold to retailers and recommended consumer price to the consumer.

However, after its thorough investigation, MyCC today said Coca-Cola as well as supermarkets and hypermarkets were not found to be involved in any vertical agreement that would likely to cause a negative effect on the market.

"Investigation further reveals that there was no evidence to indicate that Coca-Cola had induced the supermarkets and hypermarkets by way of incentives or promotional measures to encourage them to strictly adhere to the recommended resale or consumer price," the commission said.