Sofia Airport EAD Accused of Abusing Dominant Position

Business | July 23, 2013, Tuesday // 15:16|  views

Photo by Sofia Photo Agency

Bulgaria's Commission for Protection of Competition (KZK) has issued a Statement of Objection against Sofia Airport EAD for breaching Art. 21, Para. 1 of the Competition Protection Act by abusing its dominant position through a policy of imposing unjustifiably low prices on the market of ground handling services.

"Sofia Airport EAD is a company with a dominant position on the market of ground handling services at Sofia Airport. A survey indicated that from early 2011 until now, the price offered by the company to carriers fails to cover the cost of the production of the service in a long-term period, taking into account that a downward trend and an overall cost reduction was observed," the competition watchdog says in a statement.

KZK informs that its survey indicates that Sofia Airport EAD is offering ground handling services at prices which do not correspond to the costs, adding that, "contrary to all economic logic," the company is sacrificing profits which it could make if it adopted "normal competitive behavior."

"The fact that the company offered services at prices below costs in 2011 and 2012 indicates that the pricing policy applied by Sofia Airport could lead to an unjustified increase in prices and to diminishing the quality of services on offer," KZK states, adding that the company has 45 days to present its objections in writing.

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Tags: Commission for Protection of Competition, KZK, abuse of dominant position, Sofia Airport

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