BULGARIA Law and Practice Contributed by: Marin Sarafov, Petya Norova, Iva Georgieva and Eduard Milchev, G&P Law
A filing fee of EUR1,022.58 applies upon submission, together with an additional fee of 0.1% of the com - bined Bulgarian turnover of all participating undertak - ings for the preceding year – capped at EUR30,677.51 (BGN60,000) – payable if the concentration is cleared. Review The proceedings are initiated within five working days of receipt of the notification if all the required docu - ments and information are provided. Following receipt of a complete notification, the CPC will carry out a “Phase I” preliminary review, lasting for 25 business days. If the CPC concludes that the concentration does not raise competition concerns, it issues an unconditional clearance decision or, where appropri - ate, clears the transaction subject to commitments offered by the parties. Where the transaction gives rise to serious doubts as to its compatibility with effective competition, the CPC will open a “Phase II” in-depth investigation, to be completed within 90 business days (although this can be slightly extended). A notifiable concentration may not be implemented before clearance is granted, subject only to the limited statutory exceptions provided by the CPA. Clearance decisions do not carry an expiry date under Bulgarian law but remain valid only for as long as the circum - stances on which the CPC based its assessment have not materially changed prior to actual closing. Final decisions of the CPC are subject to judicial review before the Administrative Court – Sofia Region, the judgments of which may be appealed on points of law before the Supreme Administrative Court (the decisions of which are final). 6.3 Cartels Prohibition The CPA prohibits agreements between undertakings, decisions of associations of undertakings and con - certed practices that have as their object or effect the prevention, restriction or distortion of competition on the relevant market. These rules largely mirror the legal framework set out in Article 101 of the Treaty on the Functioning of the European Union (TFEU). Where the relevant conduct can affect trade between
EU member states, the CPC applies both the CPA and Article 101 TFEU in accordance with Regulation (EC) No 1/2003. The prohibition applies to both horizontal and vertical arrangements, irrespective of whether co-ordination results from a written or oral agreement, a decision of an association of undertakings or a concerted prac - tice. It covers, among other practices, direct or indi - rect price-fixing or the fixing of other trading condi - tions, the allocation of markets or sources of supply, limitations or control of production, etc. Agreements infringing the prohibition are null and void to the extent of the restriction. The CPA applies on the basis of the effects doctrine. Accordingly, it applies to agreements and practices implemented both within and outside Bulgaria where they have the object or effect of preventing, restrict - ing or distorting competition on the Bulgarian market. Exemptions The CPA recognises exemptions corresponding to those under EU competition law. Agreements that contribute to improving the production or distribution of goods or promoting technical or economic pro - gress, while allowing consumers a fair share of the resulting benefits, may benefit from exemption where all statutory conditions are satisfied. Investigations and Sanctions The CPC is responsible for investigating and sanction - ing infringements of the prohibition. It has extensive investigative powers, including the power to require information, conduct unannounced inspections, obtain oral explanations and seize evidence. Under - takings participating in prohibited agreements may be fined up to 10% of their total turnover for the preced -
ing financial year. Judicial Review
Final decisions of the CPC are subject to judicial review before the Administrative Court – Sofia Region, the judgments of which may be appealed on points of law before the Supreme Administrative Court (the decisions of which are final).
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