Institutionalisation of the protection of competition in
the Republic of Bulgaria
CPC performs its
activity in a manner and following the procedures stipulated in PCA, the
State Aids Act and the Organisational Rules of the Commission for Protection of
Competition (promulgated in the State Gazette, issue 99 of November 11, 2003) and is supported by administration consisting 92 persons, excluding the seven
Commission members. The competence provided to CPC pursuant to PCA
encompasses establishment of violations to the antitrust legislation, imposing
sanctions provided by the law, issuing permits stipulated by the law, proposing
to the competent executive authorities to revoke normative acts issued in
violation of PCA, appeal before the competent court of administrative acts
and decisions contradicting the PCA, and carrying out sector analyses of the
respective market. CPC orders termination of violations and restoration of
the initial state on established violations in case of concentration of economic
activity, permits and controls the conceding of state aids. It carries out
investigations and determines the position of enterprises in the respective
market; interacts with other state authorities and institutions, with the bodies
of the local independent government, as well as with non-governmental
organisations through participation in the development of draft normative acts.
The CPC provides opinions on projects for reconstruction and privatisation of
trade companies with more than 50 percent of state or municipal participation in
the capital or parts of them, when the PCA could be violated; carries out and
co-ordinates the international co-operation of the Republic of Bulgaria with
international organisations or with organisations of other countries in the
sphere of protection of competition; keeps a register of the issued permits and
issues a periodical information bulletin. By March 31 each year, the Commission
submits its annual report to Parliament for the activities performed in
compliance with the PCA for the previous year, and also publishes it on the
internet and in other appropriate manners.
The CPC may be
approached by a broad spectrum of persons. Proceedings before the Commission may
be initiated upon a written request by interested parties, written requests for
the issuance of permits or for admitting unified general terms, by a decision of
the Commission or by a request of the prosecutor. The meetings of the Commission
may be both open and closed and parties can use legal representation. The
meetings shall be considered quorate when at least five of the members of the
Commission are present. Decisions shall be adopted by open voting and a majority
of four votes. If the meeting is attended by less than seven members and a
majority of four votes cannot be reached it shall be adopted that the request
has not been granted or that the requested permit has been
refused.
According to the PCA,
the Commission shall provide protection against prohibited agreements, decisions
and concerted practices, abuse of monopolistic and dominant position in the
market, concentration of business activities, unfair competition and other acts
that might lead to prevention, restriction or violation of competition. The
protection applies to all enterprises carrying out their activities within or
outside of the territory of the Republic of Bulgaria and to the authorities of
the executive branch and of local government. The act also applies to
enterprises to whom the state or local authorities have assigned services of
public interest and to natural persons who contribute to the creation of a
dominant position or to the practicing of unfair competition.
The CPA and the
Organisational Rules contain detailed provisions prescribing the work and
manners for the passing of resolutions by the Commission.
In performance of its
functions, the CPC may collect evidence by, amongst other means, searching
premises and vehicles, suppress copies or abstracts of commercial
correspondence, and by taking oral explanations. The Collection of such evidence
is done upon a request of the Chairman of CPC with an approval of the district
court judge at the registered seat of the enterprise under investigation. If
necessary, the Commission may ask for the assistance of the authorities of the
Ministry of Internal Affairs. For the clarification of facts, the CPC may
request written and oral explanations from the claimant and the defendant, from
interested parties and from state and local authorities. It may require
certified copies of private or official documents, and written opinions from
state and local authorities. After termination of the investigation, the
reporter provides the file to the Commission chairman, who shall, within two
weeks, schedule an open session. Persons submitting the claim, persons against
whom the claim is submitted and other interested persons shall be invited to
attend the session. The sessions shall admit written evidence and explanations
by the parties. After clarification of the dispute from a factual and legal
standpoint, the session shall be closed and the CPC shall declare its decision
together with its reasoning not later than fourteen days after the session.