Bulgarian Commission for Protection of Competition has set its priorities for 2022
03 February 2022
In light of the obligation of the Bulgarian Commission for Protection of Competition (“BCPC”) to determine annually its enforcement priorities during the respective calendar year, taking into account the current economic situation, the need to increase competition in certain markets or to improve the market conditions, BCPC with its Decision No. 80/27.01.2022 adopted its annual priorities for initiating antitrust proceedings, and proceedings concerning unfair competition and unfair commercial practices.
As a reminder, in June 2021 with its Decision No. 606/10.06.2021 BCPC adopted Rules for prioritizing requests for instituting proceedings under Chapter Nine and Chapter Twelve of the Bulgarian Competition Protection Act („BCPA“) – i.e., antitrust, unfair competition and unfair commercial practices proceedings. Art. 11 of these Rules require BCPC to adopt a decision with its annual competition enforcement priorities and to publish the decision and the priorities on its website by January 31 of the respective year.
BCPC’s list of priorities is not exhaustive, and the inclusion of any sector does not necessarily mean that BCPC will pursue law enforcement in that very sector, as well as that the absence of any other sector does not necessarily mean that enforcement shall not be sought therein.
- Health sector (including pharmaceuticals)
BCPC keeps its focus on this sector given the ongoing Coronavirus pandemic and the sector’s impact on the country’s economy. Recent BCPC decisions in this sector testify to this trend (Decisions No. 1204/09.12.2021 and No. 1205/09.12.2021 – relating to abuse of dominant position by medical institutions). Priority will be given to requests containing allegations of misleading advertisements of food supplements, medicines, medical devices, etc., applied to viral colds, the alleged effects and properties of these products in their advertising.
- Digital economy
BCPC will continue to monitor this sector, which is a priority not only at а national but also at EU level and has marked rapid growth during and as a result of the Coronavirus pandemic. This prioritization is also determined by the Digital Services Act and the Digital Markets Act adopted at the European Union level. Also, in Bulgaria in 2021, BCPC has initiated a sectoral analysis procedure to collect data for an in-depth study of the competitive environment on the e-commerce market for consumer goods and services in the country.
- Energy sector
The energy sector has always been of a great social and economic importance and in the focus of BCPC. In 2022, the trend continues, especially given the increase in national and worldwide prices for natural gas and electricity. BCPC aim to ensure that these markets operate in a fair and transparent manner by preventing anti-competitive practices.
- Environment and climate
BCPC recognizes that there is a need for additional guidelines on the implementation of the competition rules for sustainability agreements (so called “green partnerships”), insofar as the latter must not be a cover for cartels or other anti-competitive practices. The focus will be on protecting competition in terms of promoting sustainable infrastructure and strengthening innovation to develop more competitive markets.
- Tender manipulations and prohibited agreements
In view of the long-standing practice of BCPC to investigate and sanction tender manipulations and prohibited agreements, the disclosure of such breaches and the inclusion of the public procurement procedures as a priority is not a surprise. Public procurement is particularly at risk of anti-competitive practices that are likely to cause significant harm to assignors and affect the adequate spending of public funds.
- Fuels
The automotive fuel sector is also of high socio-economic importance and has a direct effect on the economy, including in terms of prices of goods and services offered on the Bulgarian market. Moreover, BCPC has already established that there are competition problems in this sector.
- Production and trade in the food sector
Food production and trade sectors are also among the main priorities of BCPC in 2022. Food prices are directly connected to other priority sectors – energy and fuel sectors, and for a considerable period of time there have been problems related to unfair trade practices in the supply chain of agricultural and food products on the Bulgarian market.
In this regard, law enforcement in the field of unfair competition (Chapter Seven of the BCPA) and prohibited commercial practices in the supply chain of agricultural and food products (the new Chapter Seven “B” of the BCPA) are naturally among the main priorities of BCPC in 2022. The Bulgarian competition authority is expected to pay special attention to the practices of retail chains and other large enterprises – buyers of food and agricultural products to ensure compliance with the requirements on unfair commercial practices and to protecting the interests of smaller enterprises – suppliers of such products.
BCPC’s decision states that the priority sectors also include tourism, restaurants, entertainment venues and others.
Eleonora Mateina, Managing associate
eleonora.mateina@eversheds-sutherland.bg
Anastasiya Grunova, Senior associate