Bulgaria’s Consumer Protection Commission (CPC) said on November 9 that it fined supermarket chain Kaufland Bulgaria 75.7 million euro, citing “unfair trade practices towards Bulgarian food producers.”
CPC said that it launched an investigation against Kaufland Bulgaria in May, following an analysis of competition in the retail trade of agricultural and fast-moving food products.
The regulator said that it found Kaufland breached competition rules by seeking discounts from suppliers, taking advantage of its stronger negotiating position; applying further supplier price reductions by subtracting the cost of services rendered to suppliers; and by creating “unjustified barriers” for suppliers who sought a price increase for their goods.
CPC said that it imposed separate fines for those violations, which combined for 75.7 million euro. This is one of the largest amounts imposed as a fine by the regulator on a single entity.
In a statement, Kaufland Bulgaria said that it rejected in full both the accusations and the fines imposed on the company. It questioned the size of the fines, arguing that CPC’s decision disregarded European proportionality standards.
The company said that it intended to fight the fines in court (the fines can be appealed within 14 days of being handed down) and said that it would be “forced to review in full future investment in the country, including 200 million euro planned for the next three years ago.”
The statement further said that Kaufland would recommend that its parent, Schwarz Group, review its planned investments in Bulgaria. The group owns retailer Lidl, which also operates in the country.
(Photo: kaufland.bg)
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