Anti-competitive practices In 2000, a United States federal judge dismissed an
antitrust lawsuit filed by
PepsiCo Inc. accusing Coca-Cola Co. of
monopolizing the market for fountain-dispensed soft drinks in the United States. In June 2005, Coca-Cola in Europe formally agreed to end
deals with shops and bars to stock its drinks exclusively after a
European Union investigation found its business methods
stifled competition. In November 2005, Coca-Cola's Mexican unit – Coca-Cola Export Corporation – and a number of its distributors and bottlers were fined $68 million for
unfair commercial practices. Coca-Cola is appealing the case.
"Channel stuffing" settlement On July 7, 2008, Coca-Cola Co compromised to pay $137.5 million to settle an October 2000 shareholder lawsuit. Coca-Cola was charged in a U.S. District Court for the Northern District of
Georgia, with "forcing some bottlers to purchase hundreds of millions of dollars of unnecessary beverage concentrate to make its sales seem higher." Institutional investors, led by Carpenters Health & Welfare Fund of Philadelphia & Vicinity, accused Coca-Cola of "
channel stuffing," or artificial inflation of Coca-Cola's results which gave investors a false picture of the company's health. The settlement applies to Coca-Cola common stock owners from October 21, 1999, to March 6, 2000.
Investments and operations in apartheid South Africa Coca-Cola entered South Africa in 1938 and, after the beginning of the official white South African government's policy of apartheid or "separate development" beginning in 1948, the company grew rapidly. By the 1980s at the height of racial oppression, with 90% of the market, Coke dominated the soft-drink industry with sales in the hundreds of millions of dollars, accounting for 5% of the parent company's global market. Coke employed 4,500 workers, operating under the racially segregated system of housing, workplace, and wages, and was one of the largest employers in the country. In 1982 in South Africa, black workers asked the community to boycott Coke and called two work stoppages until the company agreed to recognize and bargain with their union, raise its workers' low wages significantly, and share information on who controls their pension fund. As a result of Coke's economic support of white South Africa and its apartheid system, in the 1980s, it became a major target of organizers across the country against U.S. and corporate economic support for apartheid in the U.S. Boycotts then spread across the country to many universities including Tennessee State, Penn State, and Compton College in California, which established a "Coke Free Campus". Demonstrations were held by the Georgia Coalition and the AFSC at Coca-Cola's Atlanta headquarters. In South Africa, in 1986, the Coca-Cola response was to donate US$10 million to a fund to support improvements of housing and education for black South Africans and to announce "...plans to sell its 30% share of a major bottler and a 55% share of a canning operation within six to nine months." (The company's assets there were estimated at US$60 million, their annual sales were circa US$260 million, and with 4,300 workers one of the largest U.S. employers in South Africa.) However, the movement in the U.S. demanded full divestiture and did not accept the company's offer to sell a major portion of the holdings to a South African firm. After democratic elections that produced Mandela's majority rule government, Pepsi sought to re-enter the South African market. In fact, "Coke never truly left the country, leading to overwhelming dominance through the rest of the 20th century. Pepsi adhered to different social imperatives and suffered exceptionally low market shares as a result." Indeed, in the late 2000s, Coke's market share of the soft drink market in South Africa was estimated at 95% and Pepsi's at 2%.
Marketing issues In 2001, Coca-Cola reportedly paid Warner Brothers, a unit of
Time Warner $150 million for the exclusive global marketing rights to at least one Harry Potter movie and subsequently enticing children to drink more soft drinks, a move criticized by the
Center for Science in the Public Interest. On August 9, 2015, the
New York Times published an article that revealed that Coca-Cola had made a large investment in the non-profit called the
Global Energy Balance Network, which promoted a scientific solution to the obesity crisis, which was that more exercise rather than cutting back on calories was the way to maintain a healthy weight. Health experts stated that the non-profit's message was misleading and part of Coke to deflect criticism about the role the company played in the spread of obesity and Type 2 diabetes.
Im Tirtzu On May 7, 2017,
Haaretz published that Coca-Cola has donated 50,000
NIS (approximately $14,000) to Israeli right-wing nationalist organization
Im Tirtzu. The organization, that was declared by Israeli court to have "certain lines of resemblance to fascism", asked to leave the donation private but the Israeli Corporations Authority forced the Organization to publish the donation.
2022 Russian Invasion of Ukraine On February 22, 2022, Coca-Cola announced that the company began to accumulate ingredients for the production of drinks in Russia in order to minimize the damage of the sanctions that Western countries threatened Russia following Moscow's recognition of two breakaway Ukrainian regions. After a week of
Russian invasion of Ukraine, on March 3, 2022, Coca-Cola announced that the company would not stop working in Russia and that all of Coke's operational, production and logistics facilities in Russia are working. As the result, on March 4, 2022, most Ukrainian supermarkets refused to cooperate with Coca-Cola and sell any of Coke's products. Within days, the campaign to boycott Coca-Cola for its continued operations in Russia had become international. Celebrities who criticized Coca-Cola over this include American author
Stephen King. On March 8, 2022, Coca-Cola announced it would be suspending its business in Russia, stating that "Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine."
AI-generated advertisements On November 15, 2024, Coca-Cola released its AI-generated Christmas-themed advertisement titled
"The Holiday Magic is Coming." The video was intended as a tribute to Coca-Cola’s 1995
"Holidays Are Coming" commercial, which featured similar imagery but used human actors and real trucks. The AI-generated nature of the advertisement led to backlash from viewers and artists, with critics arguing that it lacked the authenticity and warmth of its predecessor. Some also expressed concerns over the implications of replacing human artists with AI-generated content. In response, a Coca-Cola spokesperson stated: "We are always exploring new ways to connect with consumers and experiment with different approaches. This year, we crafted films through a collaboration of human storytellers and the power of generative AI. Coca-Cola will always remain dedicated to creating the highest level of work at the intersection of human creativity and technology." Another AI-generated advertisement was released a year later on November 3, 2025, which received similar criticism. ==Employee issues==