Bulgaria Fines Kaufland Bulgaria Over 75 Million Euros
Bulgaria's competition regulator fined Kaufland Bulgaria over 75 million euros for unfair commercial practices against food producers, prompting the retailer to threaten future investment cuts.
The Commission for Protection of Competition in Bulgaria fined Kaufland Bulgaria €75,653,706 for three separate violations of rules prohibiting unfair commercial practices against domestic food producers. The regulator determined that the retailer demanded price reductions from suppliers, created unjustified obstacles for producers seeking price increases, and deducted service fees from agreed supply prices.
The largest penalty of €31.85 million was issued for the deduction of service fees, while the other two violations each resulted in fines of approximately €21.9 million. The Association for Modern Trade characterized the penalty as unprecedented pressure on legitimate businesses.
Kaufland Bulgaria rejected the allegations, stating the fine lacks an objective basis and is disproportionate to European standards. The company intends to challenge the decision before Bulgarian and European institutions. In response to the ruling, the retailer warned it may reconsider planned investments of €200 million over the next three years and will recommend that its parent company, Schwarz Group, review its investment plans in the country.
