CPC under inspection at “Lukoil Bulgaria”
CPC starts proceedings against “Lukoil-Bulgaria” EOOD to establish the abuse of a dominant position in the wholesale sale of fuels.
At the request of “OMV Bulgaria” and “Insa Oil”
The company has two months to disrupt competition with its pricing policy
Allegations of market suppression
The Commission for Protection of Competition (CPC) has started proceedings against “Lukoil Bulgaria” EOOD to establish a violation of competition legislation, the commission announced. The reason is the price policy of the company in the wholesale trade of motor fuels. The production was started at the request of two other participants in the fuel market – “OMV Bulgaria” EOOD and “Insa Oil” EOOD.
“Lukoil Bulgaria” EOOD will have a period of 60 days, in which you must give written answers to the accusations.
The CPC established during the impression that “Lukoil-Bulgaria” EOOD “is part of the vertically integrated Lukoil group, which operates along the entire chain from the production of fuels to their final sale and has a highly developed storage and transport infrastructure, which represents competitive advantage over other companies operating in the fuel market in the country. The company also has a high market share and is the market leader in the wholesale motor fuel market in the country”.
According to the commission, the company applied price pressure to its competitors by gradually changing price conditions in the wholesale sale and removing discounts for the purchased quantity, which could prevent, limit or distort competition in the fuel market and affect the interest of consumers. The CPC specifies that the press price is available when the difference between the downstream market prices of the dominant undertaking and the upstream prices it charges its competitors is negative, or insufficient to cover specific selling costs of product in the downstream market.
According to the Commission, this behavior of “Lukoil-Bulgaria” EOOD represents a general strategy to limit the wholesale trade of fuels in the country, with the aim of strengthening its dominant position on the market of wholesale trade of fuels.
“The conduct constitutes an abuse of dominance, both under national law and under the law of the lower union, as it can significantly affect the pattern of trade between states,” the CPC emphasized.