Food prices are the biggest problem for consumers, followed by medicine prices. This was stated by Maya Manolova, chairwoman of the Commission for Consumer Protection, on the YouTube podcast „Ivan and Andrey UNOFFICIAL“.
According to her, large retail chains control around 70% of the market in the areas where they have stores. „With such a market share, they dictate prices,“ Manolova said. She noted that, for some promotional products, the chain’s markup had been found to be 40%.
„We saw promotions where the chain’s markup was 40%. What kind of promotion is that?“ Maya Manolova said.The CPC chairwoman rejected the explanation that the rise in prices was mainly due to higher prices charged by Bulgarian food producers. The commission has already reported markups on essential food products, with the stated figures exceeding 100% in some cases. The mere existence of a high markup is not automatically a violation, but the law prohibits differences in the markups of similar goods from the same category and different suppliers from exceeding certain limits.
Manolova defended the sanction against Kaufland, imposed by the Commission for Protection of Competition. On November 9, the CPC imposed three financial sanctions totaling €75,653,706 for unfair trading practices against Bulgarian food producers.
According to the CPC, the violations involved demands to reduce delivery prices, deducting amounts for services, and creating obstacles for producers who had requested an increase in delivery prices. The decision may be appealed before the Sofia District Administrative Court within 14 days.
Kaufland Bulgaria rejected the allegations and stated that it would defend its rights before the competent Bulgarian and European institutions. The company also said that under these circumstances it might reconsider planned investments of €200 million over the next three years.
Following the inspections at retail chains, the CPC will turn its attention to the prices of over-the-counter medicines and dietary supplements. Manolova said that the legislation currently in force does not provide sufficiently clear rules for setting these prices.
She said that pensioners had reported difficulties to her in purchasing essential food and medicines. „It is not normal for pensioners to tell me that they will have to live on bread and yogurt and ask me to fix only medicine prices,“ the CPC chairwoman said.
Manolova said her aim was to ensure that retail outlets where violations were established would not go without sanctions. The upcoming inspections of over-the-counter medicines and dietary supplements should show whether there are unjustified differences between delivery and final prices.