There has been no publicly announced separate reaction from the German government, a German regulator or parent company Schwarz Group following the €75,653,706 sanction imposed on “Kaufland” in Bulgaria. So far, the known position is that of “Kaufland Bulgaria”, which completely rejects the allegations and says it will challenge the decision through all available legal channels. BNR’s German-language service has also reported on the sanction and the company’s position, without citing any other reaction from Germany.
The company describes the size of the fine as “devoid of any objective basis” and “completely disproportionate to European practice”. In its statement, “Kaufland Bulgaria” cites European Commission data showing that all sanctions in the European Union for unfair commercial practices during the 2022–2024 period amounted to €41.9 million across 754 cases.
“Under these circumstances, we will be forced to completely review our future investments in the country, including the €200 million planned for the next three years alone,” “Kaufland Bulgaria” said.The chain added that it would recommend that Schwarz Group review its investment plans in Bulgaria. However, this is not an announcement of a definitive halt to investments, but a warning of a possible change to them after the decision enters the appeal process.
What the chain was sanctioned for
The Commission for Protection of Competition established three violations in “Kaufland’s” relations with Bulgarian food producers. The first sanction, amounting to €21,899,757, was imposed for requiring suppliers to reduce the prices of their products. The second, worth €31,854,192, was for deducting fees for services provided by the chain directly from the amounts owed to suppliers. The third fine is €21,899,757 and is related to delays in negotiations when requests were made to increase supply prices.
The CPC ordered the practices to be discontinued immediately. The decision may be appealed before the Administrative Court – Sofia Region within 14 days. In the event of non-compliance, the law provides for an additional sanction of up to 5% of the company’s average daily turnover for each day of violation.
“Kaufland Bulgaria” points out that it has more than 8,500 employees and that since entering the Bulgarian market it has created added value of nearly €14 billion. The company says it will continue operating in the country and maintaining its partnerships with local producers while defending its position before the competent institutions.
Sources: bnrnews.bg, fakti.bg, stirileprotv.ro