The Commission for the Protection of Competition (CPC) has intensified its enforcement and monitoring activities in the food sector, launching both coercive investigative measures and a broad market analysis addressing competition and fairness concerns across the supply chain.
On-site inspections in hospital food procurement cartel investigation
On 8 January 2026, the CPC carried out unannounced on-site inspections at the premises of several companies as part of an investigation into a suspected cartel in public procurement procedures for the supply of food to hospitals. The inspections were conducted with the assistance of officers from the Ministry of Interior’s Specialized Police Forces Department, following authorisation from the Sofia District Administrative Court.
The inspections form part of proceedings to establish a potential infringement of Article 15 of the Law on Protection of Competition, concerning prohibited agreements aimed at manipulating public procurement procedures. The suspected conduct relates to tenders for the preparation and delivery of ready-made food for hospital nutrition, including various dietary regimes.
The proceedings were initiated following a report submitted on 2 October 2025 by Member of Parliament Vasil Pandov, which raised suspicions of coordinated conduct by Master-Pick EAD, Balkan Meal EOOD and Party Food AD in tenders for the supply of food to medical institutions.
Given the potential for serious public harm and adverse social consequences—such as compromised food quality and violations of patients’ rights—the CPC immediately launched a preliminary investigation. This review covered all hospital food procurement procedures conducted in the city of Sofia between 2022 and 2025 in which the companies participated as competitors.
The preliminary findings indicate sufficient evidence of prohibited coordination, including bid rigging through market allocation—where specific contracting authorities are “assigned” to particular bidders—as well as the use of so-called “cover bids” intended to create the appearance of competition and prevent the cancellation of tender procedures.
Evidence gathered during the on-site inspections, including digital evidence obtained through forensic tools, will be added to the case file. Following the completion of the procedural steps, the CPC will adopt a decision within the scope of its statutory powers.
Investigation into unfair trading practices in traditional food retail
In parallel, on 6 January 2026, the CPC announced the launch of a detailed market study into the supply of basic food products to small grocery stores, as part of its broader sectoral analysis of competition in food markets. The study focuses on the so-called traditional trade segment and examines commercial relations between small retailers and their suppliers, including manufacturers, distributors and wholesalers.
The analysis aims to determine whether unfair trading practices are being applied along the food supply chain prior to products reaching retail shelves, as well as whether there have been unjustified increases in wholesale delivery prices. Where evidence of unjustified price increases is identified, the CPC will forward the relevant information to the National Revenue Agency and the Consumer Protection Commission for action under the Euro Adoption Act.
Retailers have been required to submit detailed information within 14 days covering the period from February to December 2025, including data on delivery price increases, products affected, wholesale price developments in December 2025 and planned changes for January 2026. The CPC has also requested information on any planned increases in final retail prices between 5 January and 31 March 2026, including their scale and underlying reasons.
The information request further covers delivery and selling prices of key basic food products—such as milk and dairy products, meat, eggs, oil, flour, bread, pasta and mineral water—as well as discounts granted by suppliers.
As part of the study, the CPC will place particular emphasis on regions with low purchasing power and weaker socio-economic development, analysing retail market structures and trading conditions in greater detail. The authority has confirmed that it will continue to closely monitor developments in the food sector and stands ready to initiate proceedings in cases of unfair trading practices, abuse of dominance or anticompetitive concentrations, in order to safeguard competition and protect consumers and producers.