Already in the 18th century Adam Smith recognised that the free market system has at least one fault in its construction:
People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. (Adam Smith, 2007)
In order to overcome what Adam Smith called a “conspiracy against the public”, countries or groups of countries, such as the European Union, make use of the various instruments of competition policy. Through this, the state defines the “laws of the game” and how a breach of such rules will be sanctioned.
The present assignments will explore the measures in the area of competition policy taken by the Republic of Bulgaria. In order to do so, this assignment is divided into four parts. Follow-ing this introduction, restraints of competition, the objectives of competition policy and finally the term competition policy are defined. The third and main part of this assignment will focus on competition policy in Bulgaria. It will start with a brief historical and economical review of Bulgaria, leading over to the development of the national competition policy, mainly after the fall of the “iron curtain” and explore the actual application of the corresponding legislations. Finally, the most important findings and interactions will be summarised and conclusions will be derived.
2. Definitions
2.1. Restraints on competition
With regard to Olten (1998, pp. 155-156), there are three major types of strategies (...)
Table of Contents
1. Introduction
2. Definitions
2.1. Restraints on competition
2.2. Objectives of competition policy
2.3. Competition Policy
3. Competition policy in Bulgaria
3.1 Historic and Economic Development
3.2 Development of Bulgarian Competition Policy
3.3 Functioning of the Commission for Protection of Competition
4. Summary and Conclusions
Objectives and Core Topics
This assignment examines the framework and development of competition policy in the Republic of Bulgaria following the transition from a socialist system to a market economy. It explores the alignment of national legislation with European Union standards and analyzes the role of the Commission for Protection of Competition in enforcing these regulations to ensure economic welfare.
- Historical and economic transition of Bulgaria since 1989.
- Theoretical foundations of competition policy and market restraints.
- Evolution of Bulgarian competition law and harmonization with EU acquis.
- Institutional framework and enforcement powers of the Commission for Protection of Competition (CPC).
Excerpt from the Book
3.2 Development of Bulgarian Competition Policy
This part of the assignment will describe the development of competition policy in Bulgaria by using a timeline (see Figure 4 below) on which the most important events and changes are highlighted and subsequently explained.
1989 Upon the changes based on the collapse of the soviet / communistic system in Bulgaria, the ground was prepared for the first free and multiparty elections which took place in 1990. Even though the Bulgarian Socialist Party (BSP) won these elections, (Wikipedia, 20073), the country was willing and ready to transform toward a market-economy. The Commission on Protection of Competition (CPC (20071, p 3)) points out that, as a result of this political and economical change, a legal framework, enabling market players to operate in an environment of effective competition with clear and fair rules needed to be established. Hence, the following fundamental rules should be applied:
• Market participants are not allowed to take part in collusive agreements, decisions and concerted practices which may harm other competitors and the interests of the Bulgarian citizens as end-users.
• Organisations having a dominant or monopoly market position are not allowed to abuse their position.
• In order to enable other competitors to enter and participate in the market, concentration processes, such as mergers and acquisitions should be controlled.
• By limiting State Aids, such as subsidies or state guarantees, to the lowest possible extent, the competitive environment should not be distorted.
1991 On the 21st of May, 1991, the first Law on Protection of Competition (LPC) came into force after it had been adopted by the Grand National Assembly of Bulgaria. The LPC was aimed at establishing the fundamental rules mentioned above. Furthermore, the LPC was the basis for the foundation and implementation of the Commission on Protection of Competition (CPC, 20071, p 4).
Chapter Summaries
1. Introduction: This chapter introduces the importance of competition policy as a means to prevent market failures and outlines the objective of the study regarding the Bulgarian context.
2. Definitions: This section defines the core concepts of competition policy, including various types of market restraints and the primary economic and public policy objectives of competition law.
3. Competition policy in Bulgaria: This chapter provides a comprehensive review of Bulgaria's transition to a market economy, the legislative timeline of its competition policy, and the organizational structure and powers of the Commission for Protection of Competition.
4. Summary and Conclusions: This chapter synthesizes the findings, confirming that Bulgaria has successfully established a functioning market economy and a robust institutional framework for competition enforcement.
Keywords
Competition Policy, Bulgaria, European Union, Commission for Protection of Competition, CPC, Market Economy, Antitrust, State Aid, Consumer Welfare, Economic Reform, Collusion, Merger, Acquisition, Legislation, Accession.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on the development and implementation of competition policy in Bulgaria, particularly following the country's transition from a command economy to a market-oriented one and its subsequent accession to the European Union.
What are the primary thematic areas covered?
The main themes include the definition of competition policy, the historical and economic transition of Bulgaria since 1989, the legislative harmonization with EU laws, and the operational framework of the national competition authority.
What is the main research objective?
The primary objective is to analyze how the Republic of Bulgaria implemented competition measures and developed its legal framework to meet the standards required for functioning in an open, competitive market environment.
Which scientific methods are applied in this study?
The work employs a descriptive and analytical approach, utilizing a historical timeline, institutional analysis of the competition authority, and a review of relevant legal acts and economic indicators.
What content is discussed in the main body of the text?
The main body covers theoretical definitions of market restraints, an economic overview of Bulgaria, the detailed timeline of the Law on Protection of Competition (LPC), and the powers and organizational structure of the Commission for Protection of Competition (CPC).
Which keywords best characterize this work?
Key terms include Competition Policy, Bulgaria, European Union, Commission for Protection of Competition, and Market Economy, reflecting the intersection of law, economics, and public policy.
What is the role of the Commission for Protection of Competition (CPC)?
The CPC acts as an independent state institution responsible for investigating anticompetitive behavior, monitoring market concentrations, and ensuring that economic entities comply with competition laws.
How has the European Union influenced Bulgarian competition policy?
The EU influenced Bulgarian policy significantly through the accession process, requiring the alignment of national laws with the Acquis Communitaire, specifically concerning anti-trust regulations and state aid control.
- Citar trabajo
- Dipl.-Kfm. (FH), MBA Martin Wenderoth (Autor), 2007, Competition Policy in Bulgaria, Múnich, GRIN Verlag, https://www.grin.com/document/122114
