Monday, February 22, 2010

Soda Stream (Soda Club) controversy in Germany

In 2006, by claiming that Soda Club bottles were company property, not the client (defaults customer contracts), Soda Stream tried to stop a rival firm from refilling Soda Club bottles of carbon dioxide (CO2). 

This effort is not in Germany, and now the same could happen in many other countries. 

This niche need competition, both for environmental reasons (bottles should be filled in the shop, an operation that takes only 20 seconds), and for economic reasons (cost, could easily be halved). More info on refilling - and home refilling - carbon dioxide cylinders for home soda makers here. 

Nevertheless, consideration should be given to sparkling water made at home already costs but a fraction of store-bought carbonated beverages, but things could be much better. 

Here are the facts from the Federal Cartel Office in Germany:

OLG Düsseldorf confirms immediate enforceability of Soda-Club Case 

Soda-Club GmbH, Wiesbaden ( "Soda-Club") may not use its dominant position wrongly. Soda-Club had prevented competing suppliers from refilling CO2 cartridges for water carbonating machines by claiming its ownership of the cartridges. 

In February 2006 the Bundeskartellamt prohibited this conduct. Soda Club opposed the Federal Cartel Office has immediately enforceable decision by the Düsseldorf Higher Regional Court for interim relief. In preliminary proceedings the court has now confirmed that the Bundeskartellamt decision in all material respects. Soda-Club is dominant in the market for refilling CO2 cartridges. Prevents competitors from refilling CO2 cartridges constitute an abuse of that dominant position. By this behavior Soda-Club prevents consumers from taking advantage of alternative refilling options. Only obliged to point out the labels on the company's own cartridges, it is allowed to have them refilled by competitors was seen by OLG as a disproportionate measure. 

Even Soda-Club can still appeal Oberlandesgericht decision to the German Supreme Court Higher Regional Court decision implies that the many small and medium-sized bottling plants can now begin to compete with Soda-Club and refill all cartridges are in circulation in the market.

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