Bulgaria's Consumer Watchdog Refers Another Retailer to Antitrust Authority

The Commission for Consumer Protection (CCP) has referred another retail chain to the Commission for Protection of Competition (CPC) over differences of more than 10% in the markups applied to comparable food products in the same category, following the record €75.6 million fine imposed on Kaufland.

The CCP said the retailer uses substantially different markups for products belonging to the same category, a practice that can distort competition.

The regulator examined documents submitted by the chain detailing the supply and retail prices of food products. Its comparison found that the retailer charged significantly different markups on similar goods sourced from different producers. According to the CCP, this approach may disadvantage some suppliers compared with others and undermine fair competition.

The commission cited Article 37b, paragraph 1, item 25, letter "b" of the Law on Protection of Competition, which prohibits applying different retail markups exceeding a 10% difference to comparable agricultural and food products within the same category. The legislation defines this conduct as an unfair commercial practice involving discrimination between business partners.

The CCP has sent the evidence it collected, together with its analytical findings, to the CPC so the competition watchdog can review the case and take any action falling within its authority. If a breach is established, the law allows penalties of up to 10% of the company's turnover.

The referral is the latest warning issued by the consumer protection regulator to the antitrust authority, after it previously submitted information about comparable practices at other major retail chains.

The CCP said it continues to inspect the supply and retail prices of essential food products to detect unjustified price increases and business practices that harm consumers or put producers and suppliers at a disadvantage.

The retail chain involved has not been identified.