The Commission for Protection of Competition imposed active, public and oriented towards overcoming market distortions regulation. In case of evidence of distortion of competition, the Commission uses all legal mechanisms - sectoral analyses, proceedings against unfair trade practices, antitrust proceedings, proceedings for the approval of concentrations, including subsequent control of already approved, unfair competition, preliminary investigations and on-site inspections. The goal is to guarantee effective competition and protect the public interest. This was stated by the Chairman of the CPC, Assoc. Prof. Rosen Karadimov, when presenting the results of the first year of work of the current composition of the antimonopoly body.
„The CPC does not have the function of a price regulator. The CPC is a body for early identification of market risks, prevention of market distortions and discipline of market behavior through preventive regulatory actions, monitoring and publicity. The protection of competition is simultaneously a legal, economic and public task. The Commission adopted a regulatory approach aimed at timely identification, analysis and resolution of problems through all legal instruments. This approach meant a change in the logic of law enforcement – from reactive to proactive regulatory behavior“, added the Chairman of the CPC.
At the beginning of its mandate, the CPC adopted priorities with a main focus on markets with significant socio-economic importance – food, fuel, medicines and public procurement. The preventive-regulatory function will continue to be a priority, given the scale of these markets – in 2024 the total volume of the food, fuel and pharmaceutical markets exceeds 23 billion euros. The food sector has a turnover of approximately 15 billion euros, fuels - about 5 billion euros and the pharmaceutical sector - 3 billion euros.
The CPC has identified sectoral analyses as the main regulatory tool for the overall functioning of the markets and as a basis for developing state policies and regulatory measures. The Commission carried out a large-scale sectoral analysis of essential food products, examining the entire supply chain - from production to retail. The analysis identified serious structural deformations. Work on it continued with an in-depth study of the pricing policy and trading conditions between retail chains and suppliers/producers. Based on this data, proceedings were initiated against retail chains for possible unfair trading practices towards suppliers and producers, as well as a revision of an already permitted concentration in the dairy sector - between “Tirbul“ EAD and “United Dairy Company“ EAD.
The Commission focused its efforts on uncovering cartels and bid rigging in public procurement, given the significant public resources and the risk of coordinated practices. Unannounced on-site inspections of five companies were carried out, following a court order and with the assistance of the Ministry of Interior, in investigations into possible cartels in public procurement for hospital food, supply and maintenance of IT equipment, as well as in procedures with European funds. In two separate proceedings, the CPC accused a total of seven companies of cartelism.
In the pharmaceutical sector, a sectoral analysis of the wholesale and retail markets for medicinal products was launched, focusing on the shortage of medicines, parallel exports and the risks of market distortion. The results of the analysis are yet to be presented publicly. In addition, a concentration for the acquisition of pharmacies was permitted under conditions and competition advocacy proceedings were initiated in connection with the supply of expensive medicines to hospitals.
The Commission carries out constant monitoring of the fuel market, and antitrust proceedings have been initiated against companies from the “Lukoil“ group. In connection with the crisis and the complicated situation in the Middle East, the CPC began a preliminary study of the market, analyzing production, import, storage and wholesale and retail trade. For the first time, the results were publicly announced and a package of 23 anti-crisis measures aimed at stabilizing the market was proposed.
With regard to public procurement, the CPC has a dual function: as an appeals body - it monitors the legality of the actions of contracting authorities and as a competition authority, which monitors cartels between participants in the procedures. During the year, the CPC examined 1,348 complaints under the Public Procurement Act.
Data on the signals received show increased trust in the Commission. The total number of signals increased by over 300% - from 155 in 2024 to 633 in the last year. There was a clear increase in signals for antitrust violations and for tender manipulation. If in 2023 only 2 signals were submitted by contracting authorities for tender manipulation, in 2024 - 5, then after the start of the new mandate their number reached 25. The growth of signals through the anonymous channel is also nearly 300% - from 167 to 653.
The Commission has created mechanisms for broad institutional and public dialogue through the Public Council to the CPC with the participation of nationally represented employer organizations, the two trade unions, consumer associations and experts. The goal is to increase transparency and publicity in the activities of the antitrust authority and build sustainable policies to promote competition.