Bulgaria Competition Watchdog Fines Construction Chamber

42% of all construction businesses in Bulgaria are members of the Construction Chamber. File Photo

The Bulgarian Commission for Competition Protection (KZK) has fined the Bulgarian Construction Chamber (KSB) with BGN 175 000.

The fine is over suggested construction prices listed in the KSB Ethics Code, KZK informs Monday.

In determining the amount of the fine, the Commission has taken into account the type and the duration of the violation, the full collaboration on the part of the Chamber, and their own discontinuation of the distribution of the price list.

KZK had further ordered changes in the Ethics Code and points out decisions of industrial associations leading to price fixing are the most serious violation of competition rights and are illegal.

KSB say they will appeal the decision. They have deleted the price list from their internet page, but believe the measure harms investors and institutions alike because they are now in the dark about prices and cannot compare them with those of other businesses to find out if the latter are too high or are dumping prices.

The Chamber further explains they tried to introduce the German model where the State analyzes all prices listed in public tenders and on their base determines the value of each new construction site, adding they have undertaken this function over the lack of State structure to do it.

The construction business in Bulgaria includes over 20 000 companies, mostly small and medium size. 42% of them are members of KSB, but they produce over 90% of the construction in the country.

KSB further says the crisis eliminates any opportunity for cartels since 20 to 30 companies compete in each public tender and offer.

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