European Union antitrust regulators are investigating Coca-Cola’s (KO) business practices in Europe, targeting its bottling partners in recent raids, Bloomberg reported. These raids are part of a broader probe into potential violations of EU competition laws.
While the European Commission has not named the firms, sources indicate that Coca-Cola’s bottling partners, such as Coca-Cola Europacific Partners and Coca-Cola HBC, are among the targets.
The investigation is focused on claims that companies in the non-alcoholic beverage sector may have engaged in anti-competitive practices, such as dividing markets and blocking cross-border trade within the EU. If guilty, the firms could face fines of up to 10% of their yearly global earnings.
It is worth mentioning that this is not the first time Coca-Cola has faced scrutiny from EU regulators. In 2023, the commission closed a preliminary probe into the company over concerns about exclusivity and rebate agreements, after Coca-Cola agreed to address the issues raised.
FDA Recalls 10,000 Coca-Cola Cans
At the same time, the U.S. Food and Drug Administration has issued a recall for over 10,000 Coca-Cola cans due to potential plastic contamination. The affected products, distributed in Illinois and Wisconsin, were bottled by Reyes Coca-Cola Bottling.
The recall has been classified as Class II by the FDA, which indicates a low risk of serious health issues but highlights temporary or reversible concerns. This incident, combined with ongoing legal challenges, could hurt the company’s reputation.
What Is the Future Price of KO Stock?
Turning to Wall Street, KO stock has a Strong Buy consensus rating based on 18 Buys and one Hold assigned in the last three months. At $75.56, the average Coca-Cola stock price target implies a 7.91% upside potential.
