BizCLIR

Markets operate competitively when they offer the products and services consumers desire at prices that accurately reflect the costs of production, and when consumers have the information necessary to choose rationally from among the products and services offered. A comprehensive legal framework for competitive markets has three parts: classic antitrust/competition laws, consumer protection law, and free trade laws.

Although the three bodies of law follow different routes, they share the same objective of fostering consumer welfare — more and better goods at the best prices. Competition and trade laws ensure that products and services exist. Competition law prevents parties from limiting the quality, quantity, and price of goods or services available in the marketplace. State aid laws prevent governments from protecting enterprises from market forces with subsidies and other discriminatory benefits. Consumer protection laws ensure the availability of truthful information about products and the reliability of express or implied promises.

Bulgaria has a well-developed framework of antitrust/competition laws. It has only a general state aid law. Its consumer protection policy is weak. It is not clear if the weakness in consumer protection enforcement is because the framework law or the implementing institution is weak.

The Commission for the Protection of Competition (CPC), which implements the competition and state aid laws, has the will to apply the laws but needs institution building to retain a staff of experienced and expert lawyers, economists, and accountants and structures that will make efficient use of limited resources, focusing on matters of greatest impact on the Bulgarian market. The Commission for Trade and Consumer Protection has a weak framework law, seems to have little understanding of how to apply the law, and has delivered few results.