The proposed new regulations for retail chains will considerably harm the local FMCG producers, warned the European retail organization EuroCommerce. 

In a letter, sent to the leaders of the parliamentary represented parties, quoted by Mediapool.bg, EuroCommerce warns that the proposed amendments to the Competition Protection Act, which are meant to offer better protection to the local producers, will have the opposite effect. 

According to the organization, the proposed restrictions on the large FMCG retail chains will force them to turn to international suppliers, rather than local ones. 

EuroCommerce, which has over 6 M members from 31 European countries – retail chains, suppliers, distribution companies, etc. - pointed out that the proposed restrictions and regulations for retail companies with over BGN 50 M annual turnover, is a form of discrimination. According to the organization, they were violating the European law and principles of free movement of goods and services and the right of free negotiations. 

“There is a risk of encouraging the retailers to turn to international suppliers,” the letter said. “This would lead to weakening of local production, which surely is not the goal of the amendments.” 

The amendments to the Competition Protection Act are due to be discussed in Parliament at second reading this week.

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