The Commission for Protection of Competition (CPC) has launched a detailed sectoral analysis of Bulgaria’s food market to assess whether there is evidence of cartels or abuse of dominant market positions. This move, announced by CPC chairman Rosen Karadimov on BNT, may lead to formal investigations, and in serious cases, penalties that could amount to 10% of a company’s annual turnover - effectively forcing some businesses into bankruptcy if violations are confirmed by court.

Karadimov noted that traders are already feeling the pressure after a coordinated series of checks by the CPC, the National Revenue Agency (NRA), and the Consumer Protection Commission (CPCo). A comprehensive questionnaire was sent to over 300 companies, including 50 major retail chains. These inquiries aim to determine whether recent price hikes are justified and to collect detailed data on suppliers, logistics, profit margins, and the competitive environment in different regions.

The CPC's current focus is on the fast food sector, but the wider scope of the analysis spans the entire retail food market. Once the full data is compiled, the commission will have a detailed overview of the competitive dynamics across Bulgaria - though much of this information will remain confidential due to its commercial sensitivity.

One of the CPC's primary concerns is potential abuse of dominant market positions - especially in small, regional markets where a single retailer might be able to dictate prices without sufficient competition. Karadimov explained that this kind of abuse doesn’t require proof of unjustified price increases. Rather, it’s enough to demonstrate that a company in a dominant position used that advantage in ways that distort the market.

Aside from abuse of dominance, the commission is also on alert for cartel behavior - coordinated price-fixing between companies. Karadimov explained that if one store raises its prices while others do not, the market remains functional. However, if multiple competitors simultaneously raise prices, this could point to a prohibited agreement. While such coordination is notoriously difficult to prove, the CPC is equipped with significant investigative tools - including the right to enter business premises, seize documents and electronic devices, and examine software for evidence of collusion.

Karadimov stressed that Bulgaria hasn’t seen such forceful anti-speculation efforts in years. The results from the June inspections, conducted jointly by the CPC, NRA, and CPCo, revealed that recent price increases are not tied to the planned euro adoption - countering widespread public concern.

He added that the regulatory environment has shifted significantly under the current leadership of these agencies. In the past, oversight bodies worked in isolation and were hampered by expired mandates and low morale. Today, however, coordinated efforts and information-sharing between regulators have enhanced their effectiveness. Karadimov underlined the importance of the newly signed cooperation agreement between the NRA, CPCo, and CPC, describing it as a turning point in ensuring better market oversight within the bounds of Bulgarian and European law.

Source: BNT interview