CPC has addressed allegations for committed abuse of dominant position under art. 21 of the LPC and art. 102 of the TFEU by „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, CPC regularly monitors all circumstances relevant to the enforcement of the LPC.

In this regard, following requests from participants in the wholesale fuel market (OMV Bulgaria EOOD and Insa Oil EOOD), proceedings were initiated before the CPC against Lukoil Bulgaria EOOD to establish an infringement under Article 21 of the CPC and Article 102 of the TFEU regarding the company's pricing policy in the wholesale of motor fuels.

In the course of the investigation, the Commission established that Lukoil-Bulgaria EOOD is part of the vertically integrated Lukoil group, which operates along the entire chain from fuel production to final sales and has a highly developed warehouse and transport infrastructure, which is a competitive advantage over the other companies active on the fuel markets 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.

The CPC identified competitive problems related to the pricing policy applied by the company in the wholesale of motor fuels on the territory of the country. According to the Commission, the company applied a margin  squeeze on its competitors by gradually changing the wholesale price conditions and removing volume discounts, which could prevent, restrict or distort competition on the fuel markets and affect the interests of consumers. A margin squeeze exists where the difference between the dominant undertaking's downstream prices and the upstream prices it charges its competitors is negative, or insufficient to cover the specific costs of selling the product in the downstream market.

In the Commission's view, this conduct of Lukoil-Bulgaria EOOD constitutes a general strategy to restrict the wholesale of fuels in the country in order to strengthen its dominant position on the wholesale fuel market.

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 defendant party and the applicants have the right to submit their written objections, respectively their opinions to the submitted statement of objections to address the allegations.