Latest updates
CPC fines Kaufland for abuse of superior bargaining position
Schoenherr- Competition & Antitrust
- Bulgaria
- 04 February 2021
The Commission for the Protection of Competition (CPC) recently fined retail chain Kaufland Bulgaria Lev343,417 (approximately €175,000) for abuse of a superior bargaining position. The fine was requested by an alcohol producer. The CPC also established that by abusing its superior bargaining position, Kaufland had also violated the interests of consumers.
CEZ's acquisition approved after reassessment of prohibition
Schoenherr- Competition & Antitrust
- Bulgaria
- 28 January 2021
In August 2020 the Commission for the Protection of Competition (CPC) reopened its in-depth review of the sale of CEZ's Bulgarian assets to Eurohold. Based on the collected data in the course of the investigation, the CPC concluded that the merging of two large economic groups operating in the electricity and insurance sectors did not create or strengthen a dominant position of the affected markets in which the parties operate. The CPC unconditionally cleared the transaction.
CPC introduces pre-notification contact in merger proceedings
Schoenherr- Competition & Antitrust
- Bulgaria
- 21 January 2021
From 1 January 2021, the Commission for the Protection of Competition (CPC) will be available for pre-notification discussions. To this end, the CPC has published rules for such contact. The CPC's rules on pre-notification contact are a step in the right direction in implementing best European practices on merger control. Nonetheless, it remains to be seen how practical they will be for the notifying parties.
Supreme Administrative Court repeals merger clearance for Sopharma Trading/Pharmastore
Schoenherr- Competition & Antitrust
- Bulgaria
- 24 September 2020
The Supreme Administrative Court, acting as the second and final instance, recently repealed the Commission for the Protection of Competition's (CPC's) clearance for the acquisition of Pharmastore OOD by Sopharma Trading AD. In its decision, the Supreme Administrative Court ruled that the CPC had failed to analyse the de facto vertical links between Sopharma and CHS.
Administrative court repeals Eurohold-CEZ merger prohibition
Schoenherr- Competition & Antitrust
- Bulgaria
- 20 August 2020
In October 2019 the Commission for the Protection of Competition (CPC) prohibited the Eurohold-CEZ merger due to its 'conglomerate' effect and the significant combined resources of the acquirer's and the target's groups, respectively. An administrative court recently repealed the prohibition on the grounds that the CPC formally opened in-depth proceedings but entirely omitted the in-depth investigation phase, thereby breaching Bulgarian law and the EU Merger Regulation.
Competition analysis of production, transmission and supply of heating for household and non-household needs
Schoenherr- Competition & Antitrust
- Bulgaria
- 13 August 2020
The Commission for Protection of Competition (CPC) recently opened a sector analysis of the markets for the production, transmission and supply of heating for household and non-household needs and vertically connected markets. The CPC pointed out that it has examined various aspects of the energy sector in recent years (eg, proceedings for antitrust breaches by participants on the relevant market).
Derogation from EU competition rules for milk, potato and live plant and flower sectors
Schoenherr- Competition & Antitrust
- Bulgaria
- 09 July 2020
The European Commission recently announced temporary derogations from EU competition rules for the milk, potato and live plant and flower sectors. Shortly thereafter, the Bulgarian Commission for the Protection of Competition published on its website information about temporary derogations from the prohibition on competitors in these sectors entering into agreements or undertaking coordinated practices.
CPC activity during COVID-19 crisis
Schoenherr- Competition & Antitrust
- Bulgaria
- 23 April 2020
The government recently declared a national state of emergency as a result of the ongoing COVID-19 crisis. This article outlines the impact of this declaration on Commission for the Protection of Competition (CPC) activities, including in relation to CPC operations and competition law enforcement.
CPC introduces simplified and more extensive merger filing guidelines
Schoenherr- Competition & Antitrust
- Bulgaria
- 30 January 2020
The Commission for the Protection of Competition (CPC) recently introduced new merger filing guidelines. The former guidelines did not differentiate between transactions, despite potential competition concerns. The new guidelines address this practical problem and provide for two types of filing: a simplified merger filing for mergers that are unlikely to raise competition concerns and a more extensive merger filing for concentrations which are expected to significantly affect the relevant markets.
CEZ Bulgaria not for sale
Schoenherr- Competition & Antitrust
- Bulgaria
- 19 December 2019
CEZ Bulgaria is not for sale. This seems to be the (implicit) conclusion of the Commission on the Protection of Competition's (CPC's) decision prohibiting Eurohold Bulgaria AD's acquisition of all of CEZ Group's Bulgarian assets. The CPC's decision came after a fast-track and in-depth proceeding (Phase II), which ended only 14 days after it was formally opened.
CPC fines snack distributor for unfair solicitation of customers
Schoenherr- Competition & Antitrust
- Bulgaria
- 17 October 2019
The Commission on the Protection of Competition (CPC) recently fined a snack distributor 4% of its annual turnover for the unfair solicitation of customers. The commission relied on its earlier practice to determine whether a promotional campaign launched by the distributor had infringed the Competition Protection Act. This decision is a helpful reminder that in order to avoid competition law violations, companies must carefully consider which prizes to offer in promotional campaigns.
Funeral agency fined for not complying with earlier CPC decision
Schoenherr- Competition & Antitrust
- Bulgaria
- 25 July 2019
The Commission on the Protection of Competition (CPC) recently issued a decision in which it penalised the funeral agency Elida MG EOOD (formerly Pokoy-1945 EOOD) for failing to comply with an earlier CPC decision. Such cases in which an undertaking fails to comply with a CPC decision and is therefore fined again are extremely rare due to the substantial pecuniary penalties which may be imposed on violators.
CPC clears Domuschievi brothers' acquisition of Nova TV
Schoenherr- Competition & Antitrust
- Bulgaria
- 09 May 2019
The Commission for the Protection of Competition (CPC) recently cleared the acquisition of Nova Broadcasting Group AD by Advance Media Group EAD, which is owned by the well-known Bulgarian businesspeople Kiril and Georgi Domuschievi. The CPC was adamant that the proposed acquisition would not cause anti-competitive effects in the TV distribution market because the two companies are not direct competitors; rather, they have a de facto vertical relationship.
Metro penalised for unfair comparative advertising campaign
Schoenherr- Competition & Antitrust
- Bulgaria
- 28 February 2019
The Commission for the Protection of Competition recently penalised Metro Cash & Carry for conducting an unfair comparative advertising campaign. Lidl Bulgaria EOOD had claimed that Metro's advertising campaign unfairly encouraged Lidl customers to shop at Metro instead. The case is a helpful reminder that companies designing advertising campaigns should carefully consider any direct or indirect references to their competitors, particularly if such references have negative connotations.
CPC fines A1 Bulgaria for cancelling agreement
Schoenherr- Competition & Antitrust
- Bulgaria
- 13 December 2018
The Commission for the Protection of Competition (CPC) recently imposed a Lev840,340 fine on A1 Bulgaria for cancelling a partnership agreement with its main commercial representative, Handy-Tel EOOD. The CPC held that the cancellation had effectively violated Article 37a(1) of the Protection of Competition Act, which prohibits the abuse of a dominant position when contracting.
CPC penalises Speedy AD for failing to provide complete and accurate information
Schoenherr- Competition & Antitrust
- Bulgaria
- 25 October 2018
The Commission for the Protection of Competition (CPC) recently approved the acquisition of Rapido Express and Logistics OOD by its competitor Speedy AD. However, at the same time, the CPC penalised Speedy AD for failing to provide complete and accurate information in its concentration notification which the commission deemed materially and substantially important for evaluating the deal.
CPC issues first decisions prohibiting concentrations
Schoenherr- Competition & Antitrust
- Bulgaria
- 16 August 2018
The Commission for the Protection of Competition (CPC) recently prohibited two concentrations in politically sensitive sectors (media and energy). The CPC's decisions were widely criticised for lacking valid economic arguments. Further, in both decisions the CPC limited its legal arguments to several paragraphs and failed to clarify how acquiring non-competitors (or at least non-major competitors) could strengthen the resulting group's dominant position and thus impede competition.
CPC deems minimum hotel accommodation prices anti-competitive
Schoenherr- Competition & Antitrust
- Bulgaria
- 14 June 2018
The Ministry of Tourism recently proposed the introduction of minimum prices for sites categorised as 'accommodation places'. However, the Commission for Protection of Competition (CPC) opined on the proposal's compliance with competition rules. The CPC highlighted the fact that accommodation prices depend on many factors other than category, which makes it practically impossible to set a minimum price for a category that would be adequate in every case.
Private damages directive implemented in law
Schoenherr- Competition & Antitrust
- Bulgaria
- 15 March 2018
The Act for Amendment and Supplementation of the Competition Protection Act was recently promulgated in the State Gazette. The new act follows the scope of the EU Damages Directive and applies to infringements of the Competition Protection Act regarding prohibited agreements and abuse of dominance.
Commission fines Laptop.BG for video blog content
Schoenherr- Competition & Antitrust
- Bulgaria
- 11 January 2018
The Commission for the Protection of Competition recently fined Laptop.BG for unfair practices in the form of contradicting genuine practices. An investigation was opened at the request of Golden Green Stone Group EOOD, the owner of online shopping brand eVarna, which claimed that a blogger had performed prohibited comparative advertising in favour of Laptop.BG, thereby damaging eVarna's reputation and consciously redirecting consumers to Laptop BG's online platforms.
