Heavy fines for monopolies: Parliament adopts strict rules against excessive pricing

New measures against market distortions

The Parliamentary Committee on Budget and Finance approved at second reading key amendments to the Law on Protection of Competition. The goal is to curb unfair commercial practices and prevent attempts to artificially inflate prices by companies with a dominant market position.

The introduction of sanctions amounting to up to 10% of the total annual turnover of companies that apply excessively high prices without economic justification is envisaged.

What do the legislative changes provide for?

• Definition of excessive pricing: Any value that significantly exceeds economic costs and a reasonable profit margin.
• Burden of proof: Companies with a market share of over 50% will have to prove for themselves that they are not abusing their dominant position.
• Sectoral analyses: The CPC (Commission for Protection of Competition) will conduct regular analyses of critical sectors such as food products, fuels, energy, telecommunications, and pharmaceuticals.
• Electronic register: A system for traceability along the supply chain is being created in order to detect indicators of abuse.

According to experts from the CPC, the new texts do not grant excessive powers to the regulator, but rather bring clarity to the definitions and criteria used to determine unjustifiably high prices. The bill also provides for a clear mechanism for sanctions in case of submitting false information to the new central register, with fines reaching up to 10% of turnover for systematic violations.