site.btaOnline Retailers Should Be Excluded from Draft Bill on Price Control for Basic Goods and Services, E-Commerce Association Says

The Bulgarian E-commerce Association (BEA) has expressed its disagreement with the draft bill on measures to control prices of basic goods and services, stating in an official position that if the bill is adopted, online retailers should be excluded from its scope. 

According to BEA, imposing a maximum margin of 10% without taking into account the specific requirements and cost structure of online retailers creates a risk of making it impossible for them to operate under economically viable conditions. This is stated in the Association’s position on the draft bill, published on the website of the Bulgarian Chamber of Commerce and Industry. The position is addressed to Parliament and to the Chair of the Parliamentary Economic Policy Committee, Petar Kanev. 

The draft bill, which was approved at first reading by Parliament last week, provides for the temporary introduction of maximum mark-ups on basic goods and services during the period of Bulgaria’s adoption of the euro. The bill was introduced by Nina Dimitrova of BSP - United Left and a group of MPs from various parliamentary groups. 

to BEA, the specific characteristics of online commerce were not taken into account when drafting the legislation, and the required notification procedure under EU law was not carried out. 

The Association’s principled position is that in a functioning market economy, in the absence of obstacles to effective competition, prices of goods and services should be determined by market principles rather than by the state. The imposition of maximum prices and a uniform fixed mark-up threshold of 10%, without considering the specific nature of an individual retailer’s activity, inevitably leads to the potential imposition of an obligation to sell at a margin that does not cover the trader’s full costs, the Association argues.  

On Wednesday, representatives of 11 bilateral chambers of commerce in Bulgaria issued a joint statement opposing attempts to introduce legislative measures that run counter to the principles of a market economy.

Earlier this week, twenty business organizations called on the National Assembly to reject the draft bill adopted at first reading, as well as all similar initiatives aimed at administrative control over prices and mark-ups. They warned that failure to do so would have direct, measurable, and long-term consequences for Bulgaria’s investment climate, competitiveness, and economic stability.