Business has sent its objections to the food supply chain bill to the authorities, the wording of which places additional restrictions. The texts caused reactions with the limitation of promotions to 10% and the peculiar quotas for 50% domestic production and 80% Bulgarian dairy products in stores.
On the air of the Bulgarian National Radio, the director of the Association for Modern Trade Nikolay Valkanov warned of a possible punitive procedure by the European Commission.
The Bulgarian Industrial Chamber believes that the regulatory mechanisms outlined in the new bill will have a negative effect on the competitive environment and warns that in their current form, the proposed measures pose a risk of limiting access to the market, reducing consumer choice and increasing prices.
The establishment of minimum and maximum mark-ups for participants in the chain is a gross state intervention in the private sector, the ability of the Council of Ministers to influence prices creates uncertainty in the market environment, and the introduced limits on promotional campaigns limit consumers from shopping more profitably, the business stated in a letter to the Prime Minister and the ministers of agriculture and economy. And the imposition of quotas for Bulgarian goods and products puts counter-offering at risk.
Such practices are incompatible with European competition law and may lead to sanctions for Bulgaria, Nikolay Valkanov from the association that unites hypermarkets said on the air of the Bulgarian National Radio:
The public discussion on the draft law continues until August 12.