Due to the Covid-19 crisis throughout Europe and the world, the Bulgarian businesses are facing particular challenges.The exceptional circumstances of these times and the related changes of the socio-economic environment may trigger the need for companies to cooperate with each other in order to overcome the crisis. This cooperation can be to the ultimate benefit of the consumers. Such actions includes, for example, cooperation in order to ensure the supply and fair distribution of essential scarce products and services.In response to this need, the European Commission, the CPC and the National Competition Authorities within the EU have issued a joint statement clarifying the application of the antitrust rules during the current exceptional situation.
At the same time it should be emphasized that despite the complex economic situation the principles of the functioning of the Single market of the European Union must be respected. These principles do not tolerate any form of anticompetitive conduct that can affect the free trade between member states. Following the global change at the economic land-scape, caused by the Covid-19 pandemic, common practices that are capable of isolating a given territory on a geographical basis and/or price basis are for example:
- vertical agreements for exclusivity containing territorial trade prohibition clauses and/or price setting clauses for a particular territory;
- market sharing/allocation agreements;
- positive product discrimination practices based on national origin.
The agreements for cooperation between participants on the same market as well as the ones by a supplier and a distributor (counterparties) ought not to cause artificial division of the national markets within the EU, since their integration is part of the European integration process and the maintaining of the Common market.
To prevent and suspend such practices the Commission as an authority applying the national as well as the European law on protection of competition is closely monitoring the business processes in the country.
The CPC is ready to give guidance to the companies, the associations and their legal advisors in case of uncertainty in terms of the compatibility of specific initiatives that aim to effectively tackle a situation caused by the pandemic with the competition law rules.
Where there is reasonable doubt of infringement of the competition rules, the Commission will not hesitate to initiate proceedings to establish such infringements and to penalise the undertakings responsible.
The CPC is appealing for adoption of responsible and legal business conduct by suppliers, traders and distributors from all sectors of the economy and at every level of the supply chain, including e-commerce.