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CPC speaks out after €76 million fine for Kaufland: no targeted attack

CPC speaks out after €76 million fine for Kaufland: no targeted attack

Снимка: БГНЕС

There is no attack or targeted action against specific companies being investigated by the Commission for Protection of Competition. This was stated by CPC Deputy Chair Radomir Cholakov regarding the nearly €76 million fine imposed on Kaufland Bulgaria for established unfair trading practices against Bulgarian food producers. Speaking on the “Wake Up” programme, Cholakov said that over the past year and a half, the effectiveness of the supervisory and regulatory work had begun to increase significantly.

He pointed out that the major retail chain had so far been sanctioned three times for the same violations. “Back in 2015, the previous commission established certain unfair practices in its conduct towards suppliers. In 2020, it was sanctioned, and in 2023 the sanction was upheld by the Supreme Court,” he said.

The sanction imposed in the first case amounted to BGN 340,000. In two subsequent cases in 2025, two fines of BGN 250,000 each were imposed. According to the CPC deputy chair, however, this sanction has no effect and produces no results. In Cholakov’s words, this constituted a repeat offence, which led to the imposition of a fine of nearly €76 million.

“In Poland, the latest such fine for a similar violation was €170 million. Fines have been imposed in Portugal, and the French regulator regularly imposes fines, so there is a wide variety of practices,” he said.

“The store will not close, and they said so themselves. There are absolutely no concerns,” the CPC deputy chair also pointed out. According to him, however, this will certainly affect relations between retailers and producers.

He gave an example of an unfair practice by another chain, in which a Bulgarian egg producer who had a contract to supply eggs under a toll manufacturing arrangement was asked to pay for advertising. “He refused, and they terminated his contract. This will not be tolerated. There are already new legislative requirements that chains and retailers will have to start complying with,” Cholakov said.

The CPC also stated that it did not expect prices to rise in the short term in order to offset the substantial amount of the fine. “There is market logic at play; perhaps some major retailers will have to reduce their margins somewhat,” the deputy chair said.

According to him, producers are afraid to provide information and file complaints. “A very serious subsequent violation that could be committed now would be for someone to start taking revenge on people who have given us information because they were legally obliged to provide it. If confidence in the commission increases—and it is increasing—the reports will start coming in,” he commented.

Cholakov said that, based on reports, the CPC had currently opened proceedings against eight cartels. The results are also expected soon.