Rio Tinto Signs Interim Agreement With Yinhawangka Aboriginal Group Over Pilbara Mining Operations 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Westpac Director Peter Nash Avoids Major Investor Backlash Amid ASX Scrutiny 
Samsung SDI Secures Major LFP Battery Supply Deal in the U.S. 
Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries 
Asian Currencies Hold Steady as Indian Rupee Slides to Record Low on Fed Outlook 
Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
BOJ Expected to Deliver December Rate Hike as Economists See Borrowing Costs Rising Through 2025 
SK Hynix Considers U.S. ADR Listing to Boost Shareholder Value Amid Rising AI Chip Demand 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
Evercore Reaffirms Alphabet’s Search Dominance as AI Competition Intensifies 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
Wall Street Futures Slip as Oracle Earnings Miss Reignites AI Spending Concerns 
Moore Threads Stock Slides After Risk Warning Despite 600% Surge Since IPO 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
China Adds Domestic AI Chips to Government Procurement List as U.S. Considers Easing Nvidia Export Curbs 
PepsiCo and Coca-Cola Company are reportedly under investigation at the Federal Trade Commission for a case related to possible price discrimination for their beverage products.
The probe was said to have been carried out as the federal agency wants to revive a decades-old price discrimination law that banned the practice.
According to Politico, four sources with knowledge of the matter said that PepsiCo and Coca-Cola are undergoing preliminary probes at the FTC. In this case, the beverage and snack manufacturing giants’ pricing schemes are being checked and carefully inspected under the unclear law called the Robinson-Patman Act.
Under this regulation, suppliers are not allowed to offer better prices to major retailers at the expense of smaller rivals. This law was said to have been created in 1936 but remained largely dormant. The main goal for the passing of the Robinson-Patman Act is to promote a level playing field between small and large retailers.
Moreover, it was revealed that the FTC also contacted Walmart and other big retailers in connection with the price discrimination probe. The agency is gathering data and information as to how they buy and price their soda beverages. The insiders clarified that despite being contacted, Walmart is not being investigated, nor is it being targeted like PepsiCo and Coca-Cola.
There are critics who say that the Robinson-Patman Act has the opposite effect and is not what it was intended to do when it was implemented. They said that while this law can boost small businesses, it may also unintentionally raise the prices at the large chains and harms the customers as a result.
“Bringing more Robinson-Patman Act cases would raise prices for the lowest income consumers,” former FTC general counsel, Alden Abbott, commented.
Meanwhile, the probe is still in the early stages, and people who have knowledge about it are still not allowed to discuss the matter.
Photo by: Troy Coroles/Unsplash
