CPC has addressed allegations for committed abuse of dominant position under art. 21 of the LPC and art. 102 of the TFEU by LUKOIL Neftohim Burgas AD and LUKOIL Bulgaria EOOD
Given the socio-economic importance of fuels, due to their direct impact on the entire Bulgarian economy and on the prices of goods and services offered on the Bulgarian market, within the initiated antitrust proceedings the Commission conducted an analysis of the competitive environment of the markets in the chain of sales of automotive fuels.
In the course of the proceedings, the Commission identified potential competition concerns in the access to tax warehouses. Therefore, CPC focused its investigation on the behavior of Lukoil Neftohim Burgas AD and Lukoil Bulgaria EOOD related to the restriction of access to tax warehouses and transport infrastructure, which is of a nature to restrict the import of fuels into the country.
The Commission has found that the Lukoil Group has the largest storage and related transport infrastructure, making it the dominant undertaking in the motor fuel storage market. The companies in the group have abused their dominant position through a set of actions, such as non-provision of services for reception and storage of fuels in their own tax warehouses, restriction of access to tax warehouses connected to the largest offshore oil terminals in the country and non-provision of access to the oil pipelines of the group for transportation of imported fuels.
The established practices represent a general strategy of the group for creating barriers to the import of fuels in the country and thus should be qualified as a single infringement, as they have been aimed at the same anti-competitive result.
These actions of the Lukoil Group restrict competition at the first level in the chain of sales of petroleum products - in production and import, which allows maintaining the leading position of the Lukoil Group in the country at the next levels - wholesale and retail trade.
The creation of barriers to the import of fuels in the country is of a nature to lead to a redirection of demand for fuels of local origin, i.e. those of LUKOIL Neftochim Burgas AD. This reduces the choice of wholesalers and accordingly shifts down the sales chain of motor fuels and ultimately to consumers.
The conduct constitutes an abuse of dominance, both under national law and under European Union law, as restricting imports into the country can significantly affect the pattern of trade between Member States.
Within 60 (sixty) days, the companies have the right to submit their written objections to address the allegations.