Банкеръ Weekly

Briefs

NAVIBULGAR BLACKMAILS BULGARIAN CARRIERS

The Commission on Protection of Competition imposed a BGN100,000 fine on the state-owned Navigation Maritime Bulgare (Navibulgar), because the company abused its monopolistic position when exploiting the Varna - Ilichovsk ferry link. The sanction resulted from an additional USD100 fee per carriage transported that was introduced by the Bulgarian company and its Ukranian partner in the exploitation of the Bulgarian-Ukranian sea line, Ukrferry. The partners obliged companies that need ferry to transport their commodities to use a particular agent, Ferrytransservice, on the territory of the Ukraine. Investigation in Bulgaria began due to a letter sent by the Ukraine's anti-monopoly committee which inspected Ukrferry's activity and asked for CPC's cooperation.Navibulgar managers told the inspectors that USD30 of the additional fee compensated the increased costs for renting the carriages until they are delivered to the Ukranian railway at the port of Ilichovsk. The remaining USD70 cover expenses for customs, sanitary, ecological and other services on the Ukranian port.Navibulgar's behaviour represents an extreme abuse of a monopolistic position on the market, the Commission on Protection of Competition claims. The anti-competitive effect is proven by the fact that Bulgarian forwarders are forced to write in their transport documentation two forwarders - the one pointed out by Navibulgar and the one they choose. Therefore, they have to pay twice for the same service, the commission members explain. Their decision can be appealed before the Supreme Administrative Court.

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