How is it possible that the same deodorant costs 3.75 euros in Germany and 4.50 in Bulgaria? The difference becomes even more puzzling if you compare prices with all EU member states. Because in the Netherlands it can be as much as 7.69 euros. What is the reason for this?
"Territorial restrictions on supplies"
One of the main reasons is that manufacturers sell products at different prices in different countries. But what then prevents them from being imported into the EU from neighboring countries, where it is cheaper? Very often, manufacturers do not allow it. This practice is called "territorial supply restrictions".
In 2025, the European Commission identified the practice as "one of the biggest obstacles" to the single market and promised to take measures to overcome it. According to EU data, territorial restrictions cost consumers around 14 billion euros.
"These territorial supply restrictions serve as a mechanism to maintain the artificial price differences that exist between individual member states," Ben van Rompuy from Leiden University told DW.
Back in 2018, the EU adopted a regulation banning geolocation after it found that traders were not allowing customers from other countries to order from their websites. But this is not enough, because other restrictions are also being created. "One way to do this is through the color of the packaging. "Different colours are available in different countries," the competition law expert explained.
Prices depend on various factors
Supermarkets insist on being able to import from wherever they want. "We want retailers and wholesalers to have the freedom to source from the country of their choice," says Christel Delberge of EuroCommerce, a European trade organisation.
Manufacturers disagree, however. Prices "depend on so many different factors," says Michelle Gibbons of the AIM association, which represents more than 2,500 manufacturers in the EU. "There are many different VAT rates. There are many differences in the 27 different tax systems (in the EU). Labour costs are different," she added. Producers say that transport and market specifics also have an impact.
The European Union is considering measures to address the problem. But if the practice of "territorial restrictions on supplies" is banned, this could also lead to the opposite effect in a number of countries, i.e. prices in them to be increased.
Dramatic differences also in Bulgaria
Dramatic differences are also noticeable on the territory of Bulgaria. The agricultural market information system reports that in the first week of May the same product basket costs just over 20 euros in Shumen, Razgrad, Sliven, Yambol and Burgas, but over 38 euros in Plovdiv, Pazardzhik, Smolyan, Pleven and Veliko Tarnovo. The state-owned company concludes that this is related to the costs of the supply chain and turnover in places.
In Bulgaria, the national initiative "Basket with Care" foresees that leading retail chains will reduce prices of products from the small consumer basket. However, their emphasis is on Bulgarian production, explained Prime Minister Rumen Radev.
Alexander Detev | Mari Zina