Competing fairly - Bulgaria

Updated 09/2011

Legal requirements

The Competition Protection Act (ZZK) is designed to ensure protection and conditions for developing competition and free initiative in business activity. It provides for protection against agreements, decisions and collusive practices and abuse of monopolistic or dominant positions on the market. It also deals with the control of concentrations of enterprises and relations with respect to the implementation of the EC Treaty and Council Regulations on the implementation of the rules of competition and control of concentrations of enterprises.

Competition Protection Act (ZZK)

Antitrust

Prohibited agreements, decisions and collusive practices

The Competition Protection Act prohibits any sort of agreement among enterprises, decisions by associations of enterprises and collusion between two or more enterprises which aim to prevent, restrict or disrupt competition in a particular market, for example:

direct or indirect price fixing or setting other trade conditions;
allocating markets or suppliers;
restricting or controlling production, trade, technical development or investments;
applying different terms to the same type of agreement in relation to particular partners placing them on an uneven playing field;
making a contract dependent on additional undertakings by the other party, or on the signing of additional contracts which are unrelated in character or in normal commercial practice to the subject of the main contract or implementation thereof.

All decisions and agreements of this kind are void.

Competition Protection Act (ZZK)

Abuse of a monopolistic or dominant position

The law prohibits companies from abusing a monopolistic or dominant position, and two or more enterprises with a combined dominant position, in a way which may prevent, restrict or disrupt competition and affect the interests of consumers. For example:

direct or indirect price fixing when buying or selling, or other unfair commercial practices;
restricting production, trade and technical development to the detriment of consumers;
applying different terms to the same type of agreement in relation to particular partners placing them on an uneven playing field;
making a contract dependent on additional undertakings by the other party, or on the signing of additional contracts which are unrelated in character or in normal commercial practice to the subject of the main contract or implementation thereof;
unreasonably refusing to supply goods or provide a service to a real or potential client to prevent them from carrying out their activity.
Competition Protection Act (ZZK)

Unfair competition

Any action or omission in carrying out a business activity is prohibited if it is contrary to conscientious commercial practice and harms, or is likely to harm, competitors' interests. For example:

damaging the reputation of a competitor;
providing misleading information;
misleading and comparative advertising;
imitation;
unfairly taking customers;
Competition Protection Act (ZZK)

State aid

The state may, in some circumstances, provide aid to persons or companies if this does not undermine fair competition. The rules for state aid are set out in the State Aid Act (ZDP). Aid may be provided where:

it helps the economic development of regions with low standards of living or high levels of unemployment;
it assists projects of major economic interest to the European Community or helps to overcome some major national economic problems;
it promotes the development of certain commercial activities or encourages specific economic regions, provided that this does not disrupt business conditions to an extent that runs counter to the public interest;
it helps protect cultural and historical heritage, provided that it does not run counter to the public interest;
it has been authorised by a decision of the Council and has been passed by a qualified majority based on a proposal by the European Commission.
State Aid Act (ZDP)

National competition bodies

The Competition Protection Commission (CPC) is the body authorised to enforce the Competition Protection Act (ZZK). The CPC is the Bulgarian watchdog responsible for the implementation of Community law in the field of competition. The CPC:

detects violations of the Competition Protection Act (ZZK) and Articles 81 and 82 of the Treaty Establishing the European Community;
imposes the sanctions stipulated by the law;
issues permits as required by law;
may issue injunctions in cases provided for in the law;
approve undertakings by businesses or impose measures to re-establish competition in respect of enterprises subject to investigation under the ZZK or Article 81 and 82 of the Treaty Establishing the European Community;
can order companies to stop further infringements, and enforce this by imposing relevant restrictions on their behaviour, and/or structural measures to reinstate competition; and etc.
Competition Protection Commission

Strict provisions govern company mergers

Mergers — Bulgaria

Administrative procedures

Notification of mergers

The Competition Protection Commission (CPC) is the body authorised to evaluate concentrations of economic activity.

If an operation constitutes a concentration, it must be notified to the CPC, unless it is within the competence of the European Commission. Concentrations which fall within the scope of control of concentrations of enterprises at community level are within the sole competence of the European Commission.

Enterprises must inform the Commission of a concentration after concluding an agreement, publishing an invitation to tender or acquiring control, but before real action is taken to implement the transaction.

Notifications of concentrations must be submitted jointly by the enterprises being merged or absorbed, jointly established or acquiring joint control, and by the person acquiring sole control.

Competition Protection Act (ZZK)
Pro-forma notification of a concentration and instructions for completion [160 KB]

Measures to assess a concentration are put in place within three days of receipt of the notification by the CPC, or when all the necessary information has been submitted.

A notification is announced via the Commission's electronic register, allowing any interested parties to submit information or their opinions on the effect the concentration will have on the market in question.

Public e-register of the CPC

Disputes

If a company has grounds for believing that another company is breaking the rules of competition, it may apply to the Competition Protection Commission with a request to establish an infringement and to impose sanctions.

Form requesting the establishment of an infringement and imposing sanctions for antitrust infringements
Form requesting the establishment of infringements constituting unfair competition

Submission of notices, requests and complaints of infringements of the Competition Protection Act (ZZK), the Public Procurement Act (ZOP) and the Concessions Act (ZK) can also be done online via the CPC's website.

CPC website

Under the Competition Protection Act (ZZK), the Public Procurement Act (ZOP) and the Concessions Act (ZK), the Commission charges a fee.

Tariff of charges [38 KB]
Public Procurement Act (ZOP)
Concessions Act (ZK)

Check also the legislation on this topic in:

Competing fairly - Bulgaria