site.btaCommission for Protection of Competition Launches Proceedings against Kaufland Bulgaria and Maxima Bulgaria over Unfair Trading Practices

The Commission for Protection of Competition (CPC) launched proceedings against Kaufland Bulgaria and Maxima Bulgaria, the operator of the T Market retail chain, over suspected unfair trading practices toward suppliers and producers, the regulator’s press office announced on Thursday.

According to CPC, the two cases are part of a broader sector-wide analysis of the essential food products market, covering pricing policies, discounts, markups, and the key commercial terms governing relationships between major retail chains and their suppliers.

The antitrust authority said the analysis is based on extensive data collection and an in-depth review of contractual relations in the sector. Interim findings presented in December 2025 had already identified serious structural distortions in the market.

At the time, CPC reported instances of trading practices that placed producers and suppliers at a disadvantage, including excessive discount requirements and commercial conditions that could force suppliers to sell products at or below cost. The regulator said these findings prompted a deeper investigation.

The Commission noted that, when the interim report was presented, the sector had been urged to self-regulate, with a warning that CPC would initiate ex officio proceedings, if necessary, which have now been formally launched.

The regulator added that the decisions to open the two cases follow amendments to the Competition Protection Act adopted on November 7, 2025, which increased the maximum penalty to up to 10% of a company’s annual turnover.

At the CPC’s insistence, retail chains were given a three-month deadline to bring their dealings with suppliers and producers into compliance with the new rules. According to the Commission, that deadline expired on February 9, 2026.

As part of the analysis, the antitrust authority requested detailed information from producers and suppliers of staple food products, including milk and dairy products, meat and processed meat products, cooking oil, eggs, and others, on supply contracts and framework agreements with retail chains.

CPC said it examined the mechanisms used to determine wholesale supply prices, as well as all additional commercial terms, discounts, and requirements imposed by retailers on their business partners.

The regulator further said that the investigation included an analysis of active contracts, agreements, and commercial practices, including those that remained in force after the compliance deadline had expired.

According to CPC, evidence has been found of the continued use of practices that may qualify as unfair trading practices within the agricultural and food supply chain.

These include demands for additional payments from suppliers unrelated to the actual delivery of goods, as well as practices involving unilateral price reductions and renegotiations without taking into account objective economic factors such as inflation, raw material costs, and energy prices.

The Commission also identified cases involving retroactive discounts, as well as potential retaliatory measures by the buyer against suppliers exercising their legal rights.

CPC said that the conduct of the two retail chains during negotiations and renegotiations may fall within the scope of Chapter 7 “b” Unfair Trading Practices in Agricultural and Food Supply Chain of the Protection of Competition Act.

The regulator said its in-depth sector review is ongoing and additional proceedings may be launched if further violations are identified.