Unfair competition – the essence of the term
If you have a business in Bulgaria or are planning to form a company, then you need to know how to protect yourself in case of unfair competition.
The Law for the Protection against Unfair Competition (LPUC) is the “tool” that serves commercial organizations to guard against unregulated competition attempts to beat them in the market. Any failure to comply with generally accepted rules of business competition that violate the LPUC is classified as unfair competition. In addition, there are unwritten rules of good business practice or so-called “fair economic behavior” that businesses must abide by.
Article 29 of the Law on the Protection against Unfair Competition states that any act or corresponding omission in the conduct of an economic activity contrary to good business practice, damages or may harm the interests of competitors – is prohibited!
What are the main conditions for referral to the State Commission for Protection of Competition (CPC).
The first condition is that there is commercial activity and competition between the parties.
In order for competition to exist, the parties must carry on their business in the same relevant market. They offer goods or services that can be accepted by consumers as interchangeable in terms of their characteristics, purpose and prices. And they also offer these goods or services within the same territory.
A second condition for bringing a CPC is an act or omission contrary to good business practice.
What is the definition of “unfair business practice”: it is an act or omission that violates written (regulatory) acts or unwritten (customary commercial relations or good practices) imposed by economic operators on the conduct of the business concerned.
The third condition is the presence of the damage caused or the possibility of causing it to the interests of competitors. Because the very conduct of competitive activity is not considered to be detrimental to the interests of competitors.
Proceedings for the CPC
Typically, proceedings for the CPC are initiated by
– a written request of the persons whose interests are damaged or threatened to be damaged according to the rules of the LPUC;
– written requests for the granting of authorizations or for the acceptance of uniform general conditions.
Proceedings may also be initiated at the discretion of the Commission itself in cases where, on the basis of certain data (most often disclosed by print and / or electronic media), it finds that a violation of the LPUC has been committed or committed. In these cases, the CPC adopts a procedural decision to self-refer.
Proceedings before the CPC may also be initiated at the request of a Prosecutor.
The CPC issued a decision by which:
– establish the committed offense and the offender and determine the type and amount of the sanction provided for by law;
– declare that there has been no violation of the law, or that the prescribed repayment period has been expired, leaving the application without respect;
– declare that there are no grounds for imposing prohibitions on agreements between business organizations (BOs), decisions by associations of business organizations, and the concerted practice of two or more BOs aimed at halting, limiting or distorting competition in the relevant market;
– exempts certain agreements, decisions or concerted practices from the prohibition on the previous hypothesis;
– prohibits an agreement, decision or concerted practice;
– allow or prohibit the harmonization of general conditions;
– authorizes or prohibits a concentration of economic activity;
– terminate the proceedings upon withdrawal of the request or request, as well as when the CPC is not competent to rule.
Hristo Vasilev Law Office
Hristo Vasilev Law Office provides full legal assistance and protection against unfair competition. If you need legal advice or assistance in competition law, please do not hesitate to contact us. You can send your inquiries to email@example.com or telephone: 02/4260393 and our lawyers will contact you.
This statement is informative and not exhaustive and does not constitute legal advice.
Hristo Vasilev Law Firm is not responsible if you take individual actions that are not agreed with a lawyer.