Questions over rising food prices in Bulgaria have intensified as the Commission for Protection of Competition (CPC) continues investigations into the retail sector, while also uncovering several cartel schemes across different industries.
Speaking on bTV, CPC Deputy Chair Radomir Cholakov said inspections involving two major retail chains are currently underway amid concerns that some supermarkets may be forcing Bulgarian producers to grant excessive and unlawful discounts. According to him, such practices could ultimately push prices even higher for consumers after retail markups are applied.
"There are concerns that retail chains are twisting the hands of Bulgarian manufacturers through illegally high discounts. Inspections against two major chains are ongoing," Cholakov said.
He stressed that the competition watchdog has powerful legal tools to address unfair market behavior. The commission can impose fines of up to 10% of a company's previous year's turnover for unfair commercial practices or abuse of a dominant market position. However, Cholakov warned that using those powers without caution could have unintended economic consequences.
"If we use the 'atomic bomb,' a company with a dominant market position could decide to shut down its operations in Bulgaria," he said, giving the example of a dairy processor controlling around 70% of the market.
