Lawyer Warns: Bulgaria’s Competition Watchdog Lacks Urgency as Euro Adoption Nears

The Commission on Protection of Competition (CPC) must take on a far more proactive role, especially in light of Bulgaria’s upcoming transition to the euro. This was the firm position expressed by legal expert Hristo Koparanov, a specialist in competition and consumer law, during an interview with the Bulgarian National Radio (BNR).

According to Koparanov, the CPC should not wait passively for issues to arise before taking action. He emphasized that the Commission is empowered to initiate investigations on its own, conduct sectoral analyses, and act without being prompted by external complaints. However, he noted with concern that currently, there is little public perception of any meaningful activity on the CPC's part.

“The CPC must act with foresight and not stand still,” Koparanov stated. “It should be capable of identifying potential problems before they escalate. Waiting for a crisis before responding is not an acceptable approach.”

He explained that the law does not allow the CPC to be guided by political instructions, as it also has the authority to scrutinize the behavior of state institutions. Any move to pressure the Commission into specific actions would contradict its independent oversight role.

Still, Koparanov expressed doubt over the impartiality and decisiveness of the CPC in some of its decisions, stating that at times it gives the impression of functioning like “a club/bat” - used only when convenient.

He acknowledged that there have been cases where cartels have been identified and sanctioned. Yet, he pointed out, uncovering such collusion remains a major challenge, primarily because secret cartels are by nature extremely difficult to detect. “The danger lies in the secrecy - if a cartel is truly secret, uncovering it takes real initiative and expertise,” he explained.

Koparanov cited the example of the housing renovation sector, where irregularities in public procurement processes were eventually uncovered, suggesting that a more vigilant CPC could have intervened earlier.

He also criticized the Commission’s pace when dealing with cases of unfair competition, stating that delays in such cases weaken trust in its ability to enforce market rules effectively.

In the future, Koparanov stressed, the CPC’s responsibilities will grow significantly with the adoption of the euro. He believes the institution already has the necessary legal tools but warns that its real challenge lies in how actively and effectively it uses them.

Source: BNR interview