The Consumer Protection Commission (CPC) has referred the Commission for the Protection of Competition (CPC) to various mark-ups at suppliers of similar food products. The signal was sent by the Chairperson of the CPC, Maya Manolova, after inspections at large retail chains.
According to data presented by the CPC, the difference in mark-ups between individual suppliers exceeds 10 percent. Dairy products, fruits and vegetables were inspected, including cheese, yellow cheese, fresh and yogurt, tomatoes and cucumbers. The CPC defines the practice as different treatment of comparable trading partners.
The Law on the Protection of Competition prohibits the application of different mark-ups to comparable agricultural and food products of the same category when the difference exceeds 10 percent. Whether there is a violation in specific cases must be established by the CPC, which can initiate proceedings and impose a sanction.
The sanction can reach 10% of the turnover
In the event of a proven violation, the property sanction can reach up to 10 percent of the annual turnover of the relevant enterprise for the previous financial year. This does not mean that the retail chains have already been fined. At this stage, the CPC has submitted materials to the CPC, and the final assessment is within the powers of the antimonopoly authority.
In parallel, the CPC has initiated 11 proceedings for unjustified price increases for essential goods. They cover cheese, milk, tomatoes, cucumbers and other products. The period under review compares prices in October with those in August, and the chains will be able to submit documents and explanations for the reasons for the change.
Manolova points to high markups
“In Bulgaria, markups on dairy products reach 80, 95 and 135 percent“, said Maya Manolova, quoted by the Bulgarian Telegraph Agency. She pointed out that for some of the products under review, the markups are significantly higher than the usual levels reported by the CPC in other European markets.
The next step is for the CPC to analyze the materials provided and decide whether to initiate proceedings against specific companies. Until these procedures are completed, the allegations of violations do not constitute a definitive finding of guilt, and any sanctions can only be imposed by decision of the competent authority.
Sources: plovdiv24.bg, eurocom.bg, bta.bg