The Commission for Protection of Competition imposed three sanctions totaling €75,653,706 on “Kaufland Bulgaria” for established unfair trade practices toward Bulgarian food producers. The decision triggered a sharp reaction from the company and a dispute between the regulator, the government, retail chains and opposition representatives.
The largest sanction is €31,854,192. It concerns the deduction of remuneration for services provided by the chain from the amounts owed to suppliers. The other two fines are €21,899,757 each — for requiring producers to reduce supply prices and for delaying negotiations when suppliers had insisted on price increases.
CPC: The sanction is at the lower end of the scale
CPC Chairperson Rosen Karadimov said the sanctions had been determined within the framework of the law and represented between 1.5% and 2.2% of the company’s turnover. The law allows for a sanction of up to 10% of turnover for each separate violation.
He rejected the argument that the size of the fine was unparalleled in Europe and cited Poland as an example, where a retail chain was initially fined €170 million, with the court later reducing the amount to €110 million. In his words, any potential review of investments was a political rather than a legal argument.
The proceedings against “Kaufland Bulgaria” began in May 2026. They were preceded by a sectoral analysis of the agricultural and food products market, which began in June 2025 and was presented in December of the same year. The CPC said the analysis had revealed the weak position of producers and the dominant position of retailers.
The company rejects the allegations
“Kaufland Bulgaria” completely rejected the regulator’s findings and said it complies with national and European regulations. The company stated that it would defend its rights using all legal means before the competent Bulgarian and European institutions.
The company described the sanction as disproportionate to European practice and warned that it would review its future investments in Bulgaria. These concern plans worth €200 million over the next three years. “Kaufland” has not announced that it is leaving the country or that it has already halted its investments.
Government and retailers offer differing assessments
Deputy Prime Minister and Minister of Economy Aleksandar Pulev said that the state was not waging a battle against retail chains, but against unfair practices affecting consumers and producers.
“We have never been engaged in some kind of battle with the retail chains. We are fighting unfair trade practices,” Aleksandar Pulev said.The Modern Trade Association, which brings together some of the major chains, described the fine as unprecedented and disproportionate. The organization cited data according to which all sanctions in the European Union for unfair trade practices during the period 2022–2024 totaled €41.9 million in 754 cases. The association warned that administrative intervention could discourage investment and affect competition and consumers.
What the opposition said
Among the opposition reactions was that of Kalin Ivanov — municipal chair of “We Continue the Change” in Ruse and a municipal councillor. He said that if the violations had been proven, there should be a sanction, but questioned why it had been imposed precisely now and whose interests it served.
Ivanov questioned the independence of the regulators and warned that such decisions could affect the investment climate. This is a political assessment that has not been confirmed by a court ruling or an official conclusion regarding the CPC’s motives.
The next step is judicial proceedings. The commission’s decision may be appealed before the Administrative Court — Sofia Region within 14 days. Until the court rules, the allegations of violations remain the subject of an administrative dispute, and the final amount and enforceability of the sanctions may be changed.
Sources: bntnews.bg, bnrnews.bg, rousse.info