Rossen Karadimov, Chairman of the Commission for Protection of Competition (CPC):“We are not here to create obstacles, but to ensure equal rules and a predictable environment”
What monitoring mechanisms and analyses will CPC apply to track price levels in key sectors during and after the transition to the euro?
Immediately after the new leadership of the Commission took office, we initiated active cooperation with the Commission for Consumer Protection (CCP), the Communications Regulation Commission, and the National Revenue Agency. The aim is to unite institutional efforts to prevent unjustified increases in the prices of goods and services solely due to the euro’s introduction. This joint work will continue beyond the transition thanks to our signed agreements. Thus, the state sent a clear signal to both citizens and businesses that the supervisory authorities will act in sync.
In short, under these agreements, data from joint inspections by the NRA and CCP are forwarded to the CPC. As the antitrust authority, our role is to verify whether such price increases result from cartel agreements or abuse of dominant position. For this purpose, we apply the complete toolkit of the Law on Protection of Competition—investigations of prohibited agreements, concerted practices, and unfair trading practices.
I also want to highlight the role of the newly formed Public Council under the Commission. It includes nationally representative employer organizations—the Association of Industrial Capital in Bulgaria, the Bulgarian Industrial Association, the Bulgarian Chamber of Commerce and Industry, the Confederation of Employers and Industrialists in Bulgaria—along with the two national trade unions (CISB and Podkrepa), the Bulgarian National Association “Active Consumers,” and independent experts. This is a consultative body, a platform for expert and public dialogue, which enhances the transparency and effectiveness of the CPC’s work.
Does CPC plan sectoral studies to assess the competitive environment in the context of the euro, for example, in retail, telecommunications, or financial services?
We have launched three sectoral analyses: the market for basic food products, pharmaceuticals, and waste management from electrical and electronic equipment.
In the food sector analysis, we requested information from 50 retail chains and merchants, managing around 500 outlets nationwide. We asked for data on suppliers, volumes, purchase and sales prices, and margins. This will provide us with a “full map” of Bulgaria—covering retail outlets and competitive conditions in both small settlements and large cities.
Much of the Commission’s work, however, is not visible. It is regulatory-preventive in nature. Current results from the food market study show no price increases in retail chains for basic products during June, July, and August. I hope that part of this outcome has been achieved thanks to CPC’s intervention regarding prices during the euro introduction—even without expanded powers, but within our current competences in sectoral analysis.
At the same time, observed retail prices for food show markups of 40–100% over exchange prices. This indicates a structural problem, unrelated to the euro, but rather to the fragmented agriculture sector, lack of wholesale markets and exchanges, and insufficient subsidies.
In the pharmaceutical market, we are holding meetings with all stakeholders. Two major problem areas have been identified: the parallel export of medicines and the applicable regime for monitoring the availability of products in the Positive Drug List, as well as vertical concentrations in the sector. The statutory restriction limiting one entity to four pharmacies is being circumvented through networks of formally independent companies. The initial analysis shows that regulatory improvements are needed in both areas.
Work continues on both sectoral studies, but if evidence of violations is found—anticompetitive practices, abuse of dominance, or prohibited agreements—we will initiate proceedings ex officio.
By the end of 2025, and in line with the priorities discussed by the Public Council, two more sectoral analyses are planned—on financial services and telecommunications.
The process of introducing the euro is a catalyst for these sectoral analyses, but our commitment to ensuring an effective competitive environment is ongoing and will continue in the future.
Let me add a note here. We have faced criticism that sectoral analyses involve collecting large volumes of sensitive data from businesses—commercial secrets and production information. I want to emphasize that we have introduced a system of additional safeguards to protect confidential information, ensuring its reliable protection. All measures were publicly presented to the Public Council and the media, so everyone should rest assured that information submitted to CPC is fully protected.
What sanctions can be imposed if cartel agreements or abuse of dominant position related to the euro transition are detected?
Sanctions are defined by law and are not specific to this process. They may reach up to 10% of a company’s turnover from the previous year. With a turnover of BGN 1 billion, you can imagine the magnitude of such penalties. However, reputational impact is even more important. In the context of public sensitivity regarding prices and the introduction of the euro, any company sanctioned will suffer severe reputational damage.
How can citizens and businesses report suspicions of unfair practices or anticompetitive behavior related to the euro?
Reports, including anonymous ones, can be submitted via the CPC website—the procedure is straightforward and clearly described. In the first two months of the new Commission’s mandate, the number of reported suspected violations increased six times on annual basis. I consider this a clear signal of growing public trust in the institution’s work and its greater public recognition.
How does CPC inform the public and businesses about their rights and obligations in the competitive environment after the euro’s introduction?
We maintain active dialogue with businesses and stakeholders. This is precisely why we created the Public Council—a forum for discussing policies and sharing first-hand information.
Will CPC publish periodic analyses or reports on the state of competition and pricing after the euro’s introduction?
This is part of our strategy. One of the proposed amendments to the Law on Protection of Competition concerns the possibility of publishing interim reports during sectoral analyses. If adopted, CPC will release such reports for each sectoral study. This will allow assessments and recommendations to be made without waiting, for example, two years until completion. Thus, businesses will gain predictability and clarity during this dynamic period.
What message would you like to address to the Bulgarian consumers and businesses regarding fair competition and transparency in the euro transition?
CPC actively works to establish an effective competitive environment. We operate in full coordination with other state authorities. At the same time, I want to reassure fair businesses that you are our partners. We are not here to create obstacles but to ensure equal rules and a predictable environment.
