CPC has addressed a Statement of objections to an alleged anticompetitive agreement on the domestic electric appliances market

By Ruling No 1005/08.12.2022 delivered under case CPC/350/2022, the Commission on protection of competition has issued a Statement of objections against Miele Bulgaria EOOD for an alleged infringement under Art. 15 of the Law on protection of competition and under Art. 101 of the Treaty on the functioning of the European Union, manifested in participation in an agreement for setting resale prices for the end consumers with the retailers of Miele-branded appliances. 

The proceedings were initiated by an application by Miele Center Max Group EOOD. Based on the collected evidence, the Commission has established that the supplier of electric appliances and the retailers have coordinated the resale prices, which limits the competition on the retail market for middle to high and for high class domestic electric appliances on the national territory. In the course of the investigation the Commission has established that Miele Bulgaria EOOD has been sending price lists and instructions for promotional activities, which had mandatory nature due to the imposed pressure, compliance control and incentives. The aim of this agreement is to eliminate the price competition between the retailers and to limit their freedom to independently set the prices of the offered products as a result of the competition pressure on the market. Only when undertakings are free to determine their market behavior competitive process on the respective market is unhindered. With an agreement as the one in question, the traders are deprived of the opportunity to lower the prices as a reaction to the price competition pressure, which further deprives the end consumers of benefitting from more favorable prices.

Within a period of 60 (sixty) days, the parties to the proceedings have the right to submit their written objections, respectively their opinions on the submitted statement of objections. The time limit commences on the day of serving the statement of objections.