Bulgarian Competition Law is designed to protect and foster competition and free enterprise in economic activity. Over the years the law was repeatedly changed by the legislature to meet the requirements of economic life.
Bulgarian Competition law provides protection against agreements, decisions and concerted practices, abuse of monopolistic and dominant and all other acts and actions that can lead to the prevention, restriction or distortion of competition in the country and / or affect trade between Member – States the European Union as well as unfair competition. The Act regulates the control of concentrations between undertakings. This law regulates relations concerning the application of Art. 81 and 82 of the Treaty establishing the European Community including cooperation with the European Commission and national competition authorities of the Member – States of the European Union under Regulation (EC) 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Art. 81 and 82 of the Treaty establishing the European Community, hereinafter referred to as “Regulation (EC) 1/2003 ‘, and Regulation (EC) 139/2004 of 20 January 2004 on the control of concentrations between undertakings (Merger Regulation EC), hereinafter “Regulation (EC) 139/2004.”
Bulgarian Competition Act shall apply to:
- undertakings and associations of undertakings which operate in the Republic of Bulgaria or abroad, unless expressly or tacitly prevent, restrict, distort or may prevent, restrict or distort competition in the country;
- state bodies, including executive authorities and local government, if they expressly or tacitly prevent, restrict, distort or may prevent, restrict or distort competition in the country;
- undertakings to which the state or municipality is assigned to perform the services of public interest, insofar as the application of the law is not law or in fact the tasks assigned to them, and competition in the country is not affected significantly;
- individuals who commit or facilitate the commission of an offense under this Act.
The Act created the Commission for Protection of Competition. The Commission is the national body of the Republic of Bulgaria, responsible for the implementation of Community law on competition.
The Act prohibits any agreements between undertakings, decisions by associations of undertakings and concerted practices of two or more undertakings which have as their object or effect the prevention, restriction or distortion of competition in the market, such as:
- directly or indirectly fixing prices or other trading conditions;
- share markets or sources of supply;
- limit or control production, marketing, technical development or investment.
- applying dissimilar conditions to identical contracts to certain partners, thereby placing them at a competitive disadvantage;
- making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations or additional contracts which by their nature or according to commercial usage have no connection with the subject of the main contract or its performance.
It is forbidden to conduct businesses with monopoly or dominant position as well two or more undertakings of dominant position, which may prevent, restrict or distort competition and affect the interests of consumers, such as:
- directly or indirectly imposing prices for the purchase or sale or other unfair trading conditions;
- limiting production, trade and technical development to the prejudice of consumers;
- applying dissimilar conditions to identical contracts to certain partners, thereby placing them at a competitive disadvantage;
- making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations or entering into additional contracts which by their nature or according to commercial usage have no connection with the subject of the main contract or its performance;
- unreasonable failure to supply goods or provide service to real or potential client to hinder the attainment of its business.
The Act prohibited any act or omission in the course of business which is contrary to good commercial practice and harms or may harm the interests of competitors.
Shall be prohibited to damage the reputation and credibility of the competitors and their products or services by stating or disseminating untrue information, as well as by presenting the facts in a distorted form. Shall be prohibited to mislead in relation to essential characteristics of goods or services on or use of the goods or the provision of services by alleging false statements or misrepresenting facts.
It bans misleading and unlawful comparative advertising.
Advertiser and advertising agency prepared the ad, are liable for misleading and unlawful comparative advertising.
The offering of goods or services, appearance, packaging, marking, name or other characteristics which mislead or might mislead as to the origin, producer, seller, manner and place of manufacture, source and manner of acquisition or use quantity, quality, nature, consumer characteristics and other essential characteristics of the product or service is prohibited.
LIABILITY AND PENALTIES
For breaking the law are provided penalties, some of which are:
- Commission imposed a penalty of up to 10 per cent of total turnover for the previous financial year of an undertaking or association of undertakings
- Individuals contributed to the performance of violations under the Act if the act constitutes a crime shall be punished with fine from 500 to 50 000 BGN.
If you believe that your rights under this Act have been violated please contact us. We are ready to help you.
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