Bulgarian Experts Warn of Food Price HikesBusiness | March 26, 2014, Wednesday // 12:57| views
There is an increased risk of drastic food price hikes in Bulgaria because of Government's actions against the modern retail chains.
According to Yordan Mateev, executive director of the Modern Retail Association, the draft amendments to the Competition Protection Act would affect not only the retail sector, but all business activities.
Certain definitions, such as “considerable market power”, will create problems, because it is rather vague, in his opinion. According to Mateev, the EC dislikes such terms and is preparing limitations, which will not allow the separate countries to take such restrictive measures.
“The retailers will hike the prices, because they would start calculating the eventual fines, which could reach up to 10% of the turnover,” Mateev said.
According to him, in Bulgaria there is no monopoly of the large chains in the retail sector, as they hold about 36% of the market.
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