site.btaParliament Approves at First Reading Competition Protection Amendments Targeting Unfair Trade Practices

Bulgaria's Parliament on Wednesday approved at first reading amendments to the Competition Protection Act aimed at curbing unfair trade practices and strengthening market oversight. The draft legislation, submitted by Progressive Bulgaria, passed with 148 votes in favour, 22 against and 22 abstentions.

The bill was backed by Progressive Bulgaria and the Movement for Rights and Freedoms. Voting against were eight MPs from Democratic Bulgaria and 14 from Continue the Change, while Vazrazhdane's MPs and 11 of Democratic Bulgaria abstained. MPs from GERB-UDF did not take part in the vote.

The amendments expand the scope of prohibited unfair trade practices and provide for the creation of a central electronic register to ensure traceability across supply chains for agricultural and food products, as well as other wholesale goods designated by the Council of Ministers. The register is intended to support market monitoring, sector analysis and the early detection of unfair trade practices or competition violations.

Under the proposed changes, companies in dominant or jointly dominant market positions would be prohibited from imposing excessively high prices. A price would be considered excessive if it significantly exceeds economically justified production, acquisition and distribution costs, including a reasonable profit margin.

The bill also gives the Commission for Protection of Competition the power to impose temporary measures before the completion of proceedings in cases where there is a risk of serious or difficult-to-repair harm to competition.

During the debate, opposition lawmakers supported efforts to tackle unfair trade practices but warned that some retailers could raise prices pre-emptively because of the proposed measures. Representatives of the ruling majority rejected those concerns, arguing that a separate bill to be debated on Thursday would extend the euro changeover pricing rules by one year, requiring businesses to justify any price increases.