The Commission for the Protection of Competition (CPC) has opened formal proceedings against Kaufland Bulgaria EOOD & CO and Maxima Bulgaria EOOD, the operator of T-Market stores, over suspected unfair trading practices in their relations with suppliers and producers, according to an official statement from the regulator.
The move follows a broader sector-wide review of the essential food retail market, which has been underway for some time and is based on detailed analysis of pricing structures, discount mechanisms, retail markups, and contractual arrangements between large chains and their suppliers.
Preliminary findings from the CPC, presented in December last year, pointed to significant structural distortions in the food supply chain. The regulator noted indications that some commercial practices between large retailers and producers may place local manufacturers in a position where they are forced to sell goods at or below production cost due to the scale of discounts and contractual obligations.
According to the Commission, this prompted a deeper examination of how major retail chains structure their pricing policies and negotiate conditions with suppliers, particularly in key food categories such as dairy products, meat, oil, and eggs.
As part of its monitoring process, the CPC also highlighted that it initially encouraged the sector to rely on self-regulation. However, it warned that failure to align commercial practices with legal standards would lead to the launch of formal proceedings initiated on the Commission’s own authority.
The current cases were initiated after amendments to the Competition Protection Act, adopted on November 7, 2025, which increased the maximum potential penalty for violations to up to 10 percent of a company’s annual turnover. Following these changes, retailers were given a three-month deadline to adjust their contracts and commercial relations with suppliers, which expired on February 9, 2026.
The regulator’s investigation included requests for extensive documentation from food producers and suppliers, focusing on how supply agreements and framework contracts are formed, how wholesale pricing is determined, and how trading conditions are negotiated with retail chains.
Authorities reviewed contracts and related documents valid after the February 9 deadline in order to assess whether current practices comply with updated legal requirements governing agricultural and food supply chains.
Based on the collected material, the CPC identified indications that some pricing and contractual practices could involve continued use of unfair trade conditions. These include, among others, requirements for payments not directly linked to product sales, pressure to renegotiate prices annually without accounting for external cost factors such as inflation or energy prices, and requests for retroactive price reductions.
The law also prohibits practices such as imposing supplier payments unrelated to actual trade flows, forcing unilateral contract changes, or threatening retaliatory measures when suppliers exercise their contractual rights.
According to the CPC, the evidence gathered during the sector analysis suggests that certain practices within the operations of Kaufland Bulgaria and T-Market may fall under provisions of Chapter Seven “b” of the Competition Protection Act, which regulates unfair practices in the supply chain of agricultural and food products.
The investigation remains ongoing, and the Commission has stated that additional proceedings may be initiated if further violations are identified during the continuing review of the retail sector.