Competition Law in Bulgaria
Competition Law in BulgariaUpdated on Monday 12th February 2018
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The Competition Law in Bulgaria ensures that business activities and initiatives in Bulgaria are protected against unfair or expansion and market monopoly, at the same time focusing on the consumers’ interests. Because Bulgaria is a member of the European Union, its laws regarding lawful competition among legal entities are in line with the European legislation.
Our lawyers in Bulgaria can help business owners comply with the provisions of the Competition Law.
General competition provisions in Bulgaria
The Competition Act in Bulgaria contains the general provisions for ensuring that the manufacturing and the distribution of services within the country’s territory takes place in a manner in which all market participants observe the basic requirements for lawful domestic competition.
The Act protects against unjust competition and monopolistic activities and sets forth the conditions for the existence of the Commission for the Protection of Competition, an autonomous institution in the country.
According to the Bulgarian Competition Law, monopoly is misused by a company in Bulgaria or by an individual when:
- other individuals and/or companies are incapable of carrying out their business;
- inequitable contract terms are applied;
- goods and services are imposed on the market that are below the usual quality standards;
- a shortage of goods is created or when the competitors’ goods are bought up;
- an economic constraint that forces other companies to dissolve or be subject to a merger in Bulgaria;
- monopoly prices are imposed.
One of our attorneys in Bulgaria can detail on these situations in which monopoly is considered to be improperly used.
Restriction on unfair competition
The Law on unfair competition in Bulgaria also targets agreements and decisions or practices that encourage a dominant or monopolistic position on the market. For this purpose, companies in Bulgaria may not enter into agreements that prevent, distort or restrict lawful competition or affect trade.
Unfair competition is prohibited in Bulgaria. This means that companies and individuals may not fix prices or influence the conditions for trading, either through direct or indirect actions. Moreover, they cannot control production or limit it, may not control or limit investments in Bulgaria. With regards to the treatment of partners, a company or individual in Bulgaria may not place another party at a competitive disadvantage.
You can contact our law firm in Bulgaria for detailed information on how the Competition Law applies in various business fields and the extent of the liability for company owners.