On 2 December 2008, new laws came into force making significant changes to domestic competition rules, including a modified merger control regime and large increases in the levels of fine for infringements.
Merger Control
- mandatory merger control is based on the parties’ annual turnover in Bulgaria for the preceding financial year. It applies where the aggregate turnover of all the parties exceeds BGN 25 million (c. € 12.8 million) and that of either the target or at least two parties exceeds BGN 3 million (c. € 1.53 million)
- a first stage (misleadingly called “fast-track”) investigation should be finalised within 25 working days but extensions are possible and the clock stops when a notification is considered irregular or incomplete
- a second stage investigation should be completed within 4 months of publication in the public register on the CPC’s website but extensions are also possible
Fines and other powers
The CPC will have the power to impose considerably higher fines for all infringements (i.e. for cartels, abuse of dominant position, failure to notify and unfair competition) of up to 10% of the infringer’s annual turnover, as well as periodic fines of up to 5% of their average daily turnover for non-compliance with CPC decisions.
The CPC is also able to impose interim measures for up to 3 months (with the possibility of extension) in urgent cases if it identifies a risk of serious and irreparable damage to competition in the domestic market. This includes ordering an immediate suspension of particular conduct and any other measures it considers appropriate. The measures are effective immediately even though they may be subject to judicial appeal.
The CPC also has powers to investigate and take action against activities in Bulgaria which contravene EU competition law (Articles 81 and 82 of the EC Treaty).
Despite initial suggestions, the legislation still includes unfair competition rules and also transferred powers to punish misleading and comparative advertising to the CPC from the national Commission for Protection of Consumers.
Exemptions
A
de minimis
threshold for restrictive practices in a particular market applies to competitors with a combined share of 10% or less of the relevant market and non-competitors with a combined share of 15% or less.
There is no longer any individual exemption for agreements which are neither de minimis nor covered by a group exemption: businesses will have to self-assess the compatibility of their agreements, decisions and practices with EU and national competition laws.
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