site.btaParliament Tightens Regulations for Hypermarkets

Parliament Tightens Regulations for Hypermarkets

Sofia, April 30 (BTA) - Bulgaria's Parliament Thursday passed on
first reading amendments to the Protection of Competition Act
dealing with the relationships between retail chains and
producers. The bill was moved by Bulgarian Socialist Party (BSP)
Chairman Mihail Mikov and a group of MPs of BSP-Left Bulgaria.
The vote was 95 in favour, 2 against and 41 abstentions.

The Socialists propose the introduction in the Act of the notion
of "significant market power" for an undertaking which,
considering its market share, may impede competition in the
relevant market because its suppliers or buyers depend on it.

The bill obligates undertakings with an annual turnover of more
than 50 million leva for the preceding year to amend the draft
model contracts and/or general conditions, where so required to
be brought into conformity with competition rules. A failure to
fulfil the obligations introduced by the Act will be punishable
by a pecuniary penalty of up to 10 per cent of the aggregate
turnover for the preceding financial year.

Presenting the bill, Kornelia Ninova MP of BSP-Left Bulgaria
pointed out that the amendments were drafted after an analysis
of the Bulgarian regulatory framework and the framework in the
other EU Member States and of unfair commercial practices in the
supply of foods and non-foods.

The MPs resolved to extend to three weeks the deadline for
motions and debate before the draft legislation comes up for a
conclusive second reading.

The BSP moved the same revisions in the previous 42nd National
Assembly. The bill was adopted, but President Rosen Plevneliev
vetoed it and the legislature did not manage to revote it
because its term was cut short.

Back when the bill was submitted in the previous Parliament,
hypermarket executives took a categorical stand against such
regulation and threatened that it will lead to an increase of
prices for end consumers.