The Government of Bulgaria (GoB) isconcerned that large retail chains may be using theirsuperior bargaining position to dictate the terms ofcontractual relations with their suppliers. The Governmentbelieves that this constitutes unfair trading practices(UTP) and remedies should be found in the nation'scompetition policy framework. The GoB is considering theintroduction of the concept of significant market power(SMP) into the competition legislation. To address the UTPissues in business to business (B2B) relations in the buyersupplier relations, the Minister of Finance of the GoB askedthe World Bank in end-October 2013 for technical support inthe area of competition. In November 2013, the task wasfurther specified and the GoB asked the World Bank toexplore how and whether the SMP concept, anchored in thecompetition policy framework, will effectively address UTPin B2B relations. The World Bank organized a technicalworkshop, titled significant market power and unfair tradingpractices: issues and challenges in collaboration with theoffice of the Deputy Prime Minister for economic developmentand the Bulgarian commission for protection of competition.The workshop presented the mixed success of internationalpractices in addressing unfair trading practices. The WorldBank analyzed European Union (EU) member state policies inaddressing unfair trading practices against the followingcriteria: effectiveness, alignment with economic principles,adaptability, efficiency and timeliness, and analyticallybased, dependent, transparent, contestable, and reversiblepractice with due process. Additionally, the World Bankprovided an economic assessment of how implementable andeffective the significant market power will be to addressunfair trading practices using competition policy. Thisassessment is based on the economic principles provided bythe European commission guidelines, that is, take correctiveaction when abusive behavior harms consumers, not competitors.
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