Retailer Chains Will Restore the Competition

Date: 21/09/2012 Comments: 0
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The Commission on Protection of Competition(CPC) has approved the suggestions submitted by 6 leading retailer chains to restore the competition on the market. The retailer chains have taken the responsibility to adjust their contracts according to Article 75 from the Law on the Protection of Competition, announced Mediagroup.

There will be no more clauses such as “most favored client”. The obligation for lower prices and prohibition of parallel promotions will not be valid as well. The enslaving sanctions for the suppliers will be removed. The retailer chains promise to make the adjustments 30 to 90 days after the acceptance of the decision. It is not conclusive and can be appealed against the Supreme Administrative Court.

CPC reminded that in the vertical contracts between retailer chains and suppliers were found clauses, connected with price formation of the goods, which create debts and limitations for the suppliers. The commission believes that the simultaneous presence of these clauses in the contracts of different retailer chains with the same suppliers could result in conscious coordination of the behavior of the supplier companies. Antimonopoly authorities believe that such coherence would lead to unification of trade and marketing politics on the supplier market.

The retailer chains that will adjust their contracts are “Metro Cash & Carry Bulgaria”, “Billa Bulgaria”, “Kaufland Bulgaria”, “Hit Hypermarket”, “Maxima Bulgaria”, and “Piccadilly”. The suggestions will lead to fast and effective prevention of the risk for the competition and contain specific measures for restoring the competition on the market, announced CPC.

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