The Competition Commission recently sent statements of objection for abuse of dominant position by three electricity distribution and supply companies. According to the commission, allegations were made that the companies had traded information regarding customers switching from the regulated market to the liberal market in order to purposely stall the necessary paperwork.
A recent competition breach by the Sofia Commodity Exchange AD resulted in a 0% fee for purchasers (ie, members of the exchange). The Supreme Administrative Court and the Competition Commission both held that the lack of fees had placed purchasers in a more favourable position, leading to unfair competition which contradicted good-faith practices. In addition to a fine based on the net turnover of sales, the commission ordered the immediate suspension of the exchange's breaching activities.
The Commission for the Protection of Competition (CPC) recently adopted an opinion on the draft act for the amendment of the Administrative Procedure Code. The CPC supports the introduction of electronic justice which, in its view, will increase the efficiency of the judiciary system and prevent unnecessary delays. However, it disagrees with the increase in state fees and the proposal that the state fee for cassation is to be defined as a percentage of the imposed penalty.
For the second time in less than five years the Commission for the Protection of Competition has opened investigation proceedings regarding prohibited agreements and concerted practices against the major fuel companies in Bulgaria and closed them without issuing penalties. An investigation was launched and the commission found that the retail price of some petrol companies in Bulgaria does not always follow the wholesale price and producers' prices.
The Competition Protection Commission recently fined Kaufland Bulgaria EOOD for abuse of stronger bargaining power regarding its supplier, Keti-94 OOD. This is the second commission decision relating to abuse of bargaining power – a concept introduced into Bulgarian legislation in July 2015. The commission found Kaufland's breach to be severe and imposed a 7% fine generated from Kaufland's turnover on the market for sales of low-priced alcohol.
The Commission for Protection of Competition recently conducted a sector analysis of the competition environment in Bulgaria's insurance market. The main purpose of the report was to provide insight into the insurance market and specify potential competition issues. It is expected that strategies, programmes and plans to improve the insurance environment will be adopted in the future by the relevant bodies.
The Commission for the Protection of Competition has fined Siemens EOOD for abuse of stronger bargaining power. Given the abstract wording of the term 'abuse of stronger bargaining position' in the Competition Protection Act and the lack of any methodology or instructions regarding its application, the commission's decision should be considered as initial guidance on how it will interpret the term in future.