There is a price increase - is it justified, inevitable or speculative, is the question that consumers are increasingly asking themselves on the eve and in the first months after the introduction of the euro. The topic of prices and who and how is responsible for their unjustified increase was commented on by the Chairman of the Commission for the Protection of Competition, Rosen Karadimov.
In his words, the unjustified price increase in itself is not directly within the powers of the CPC. Control over prices and sanctions for speculation are primarily the task of the National Revenue Agency and the Consumer Protection Commission.
The role of the CPC begins when there are doubts that the increase is the result of prohibited agreements and cartels, he added.
Therefore, even before the introduction of the euro, the regulators coordinated their actions. Information is exchanged daily - when the CPC establishes indications of unjustified price increases without evidence of a cartel, the signals are forwarded to the National Revenue Agency and the CPC. In the opposite case - in case of suspicion of agreements between traders - the inspections are taken over by the antimonopoly body.
Severe deformations in entire sectors
The sectoral analyses of the CPC, which began in the summer, reveal structural problems in agriculture, especially in milk and dairy products - a 25% drop in production in four years and a 45% increase in imports. According to Karadimov, this leads to unequal contractual relations between producers and large retail chains.
Especially worrying is the practice of the producer providing the so-called "discounts" to the chains - formally agreed upon, but actually imposed by the stronger party. It is here that the CPC sees an unfair trade practice that, in the long term, harms both producers and consumers.
Food, medicines and hospital orders
According to the CPC, the food sector in large retail chains is currently relatively stable, thanks to promotions and frozen prices. The situation is different with medicines, where the analysis continues. The commission has already requested detailed information from hundreds of pharmacies about price movements in recent months, and in the absence of data on a cartel, the signals will be transmitted to the National Revenue Agency.
A serious investigation is also underway into a possible cartel in the supply of hospital food. Public procurement and contracts have been checked at the request of a member of parliament, and according to Karadimov, there is indirect evidence of market sharing between several companies. The inspections include the seizure of equipment and documentation, and the case is considered to be of high social importance.
Mineral water and the “long chain“
The regulators' attention is also focused on the price increases for mineral water, where increases of up to 135% have been reported for certain products. The CPC is already inspecting traditional trade - small shops, where the supplier is often in a stronger position and unilaterally changes prices.
The commission's general conclusion is that price pressure moves along the entire chain - from production to the final retailer. When there is no evidence of prohibited agreements, the information will be used by the NRA for inspections related to taxes and speculation.
Will the last waltz of the lev also turn out to be the last for speculative practices - the answer will come with the results of the inspections that have been initiated and the upcoming reports of the regulators.