The Commission for the Protection of Competition protects Bulgarian producers in their dealings with retail chains and applies the law equally to all participants. The Commission’s actions are based on in-depth investigations and evidence. This was stated by Zhelyo Boychev, a member of the Commission for the Protection of Competition, on BNT’s “The Day Begins” programme, regarding the fines imposed on Kaufland for unfair trading practices against suppliers and food producers.
“The decision is the result of prolonged and consistent work on the sector analysis of the food market, which highlighted structural problems throughout the supply chain. It showed the unfair distribution of added value along the chain, which shifts the economic benefits from the producer to the retailer,” Boychev stressed. He said that the Commission’s work is not limited to the formal content of contractual relations, but also covers the ways in which they are negotiated, performed and applied.
Boychev stressed that the CPC launched an investigation on its own initiative based on data collected as part of its sector analysis of the food market. He pointed out that producers and suppliers refrain from submitting official complaints due to fears of adverse consequences for their relations with retail chains, which makes the regulator’s active intervention particularly important.
As an example of the imbalance identified, Boychev cited the annual negotiations over reductions in supply prices. According to him, when an agreement is reached, the reduction is applied retroactively from the beginning of the year. At the same time, producers’ requests for price increases are accompanied by additional requirements and prolonged delays.
Regarding the amount of the fines, he stressed that the Commission strictly observes the law, applies the adopted methodology and takes into account the severity of each infringement. Boychev rejected claims that fines of a similar size are an exception in European practice, pointing to the actions of regulators in Poland and France. “The fines are classified as ‘not particularly serious’ – the methodology provides for a fine of up to 5% of turnover, while fines of 1.5% were imposed for some of the infringements identified. We apply the law as it is to all economic operators,” he said.
Zhelyo Boychev also recalled previous fines against Kaufland, including a fine imposed in 2016 and ultimately upheld by the Supreme Administrative Court in 2021. In 2025, the Commission imposed two more fines of BGN 250,000 each on the company. Court proceedings in these cases are ongoing, during which financial and economic expert assessments are being carried out. Boychev stressed that the CPC supports its findings with facts and evidence and that the final assessment of the fines imposed rests with the court. He recalled that the Commission had imposed a fine of more than BGN 262 million on Lukoil for an established abuse of a dominant position, and pointed out that the CPC had identified infringements in the markets for fuel storage and wholesale fuel trading.
Zhelyo Boychev also outlined the Commission’s work investigating suspected cartel agreements. According to him, eight proceedings are under way in connection with public procurement, including the supply of food products to medical institutions, information technology and construction. The fuel sector remains under constant monitoring.