THE COMMISSION CARRIES OUT DAWN RAID AT THE ASSOCIATION OF BULGARIAN INSURERS IN CONNECTION WITH THE INCREASE IN THE PRICE OF CIVIL LIABILITY INSURANCE
On 28 November 2024, the Commission for Protection of Competition (hereinafter the Commission, CPC) entered the premises of the ASSOCIATION OF BULGARIAN INSURERS (ABZ).
The inspection at the premises of the association of insurers was conducted in connection with the initiation of proceedings to establish a possible infringement of Article 15 of the LPC and/or Article 101 of the Treaty on the Functioning of the European Union (TFEU) by the following insurance companies providing compulsory third party liability insurance for taxi drivers: „DallBogg: Life and Health Inc“., „LEV INS“ AD, „Euroins insurance“ JSC, „Bul Ins“ JSC, „JSIC OZK-Insurance JSK“, „DZI - General Insurance“ EAD, „Bulstrad Vienna Insurance Group“ JSC, „ARMEEC INSURANCE“ JSC, „Generali Insurance“ AD, ZAD „ALLIANZ BULGARIA“ AD, “UNIQA INSURANCE”AD , „GROUPAMA ZASTRAHOVANE“ EAD, INSURANCE COMPANY „ASSET INSURANCE“ AD, ZAD „ENERGY“ AD, „SAGLASIE INSURANCE“ JSC, „Insurance Company EIG RE“ AD and Association of Bulgarian Insurers.
The Commission will investigate whether insurance companies offering third party liability insurance have co-ordinated price increases for taxi customers in the country which could potentially restrict or distort competition in the relevant market. After analysing the information collected, the CPC will be able to draw a reasoned conclusion on the existence of a possible cartel agreement between undertakings and/or the existence of decisions by associations of undertakings within the meaning of Article 15 of the CPC and Article 101 of the TFEU.
The dawn raids actions are carried out by CPC officials, assisted by Ministry of Interior officials, after obtaining judicial authorisation from the Administrative Court - Sofia District.
During the inspection, both paper documents and digital copies of documents and correspondence will be seized and analysed in detail. The forthcoming detailed analysis of the documents collected will show whether there is sufficient evidence to bring infringement claims against the defendants. If so, they will be given the opportunity to exercise their rights of defence by having access to the material and evidence gathered, the right to object and the right to be heard if they so wish. Once the procedural steps in the case have been completed, the CPC will issue a final decision on the proceedings.
Under Article 101 of the LPC, the CPC may exempt from a fine the first undertaking in line which discloses its participation in the cartel and provides evidence which enables the Commission to prove the infringement. The CPC may reduce the fine for the second and subsequent undertakings in line if they provide evidence which is essential to prove the infringement. The conditions for immunity or reduction are set out in the Immunity and Reduction Policy, available at https://www.cpc.bg/prohibited-agreements#tab-2