Mexico sanctions Coke for anti-competitive practices.

Mexico's anti-monopoly regulator has ordered Coca-Cola Co. to halt what it called anti-competitive practices in Mexico, the world's largest per-capita consumer of Coca-Cola drinks, according to a report by Reuters. The Federal Competition Commission said Coca-Cola's Mexico affiliates "undertake

The commission said in a statement it ordered Coca-Cola to suspend the practices, which it said include demanding purchasers of Coca-Cola products not sell competitors' drinks, and offering discounts to retailers on the condition that they exclusively sell Coca-Cola products.

Competitors in Mexico -- led by archrival PepsiCo -- alleged that Coca-Cola makes unfair exclusivity demands of Mexican stores and restaurants that stock its products, giving Coco-Cola about a 65 percent share of Mexico's $5.0 billion soft drinks market.

The commission's ruling was that Coke had violated competition laws in the so-called take-home retail channel -- shops and stores -- and does not affect sales in restaurants, bars, hotels, cinemas and stadiums, said Rodrigo Calderon, vice president of external affairs at Coca-Cola de Mexico. He said Coca-Cola would take steps, including possible court action, to convince the commission the company is not in violation of the competition laws.

Pepsi, however, hailed the competition commission's move. "Pepsi-Cola Company is very encouraged by the (competition commission's) decision and believes that this decision represents a victory for Mexican consumers and fair competition in the Mexican soft drink market," the company said in a statement.