Working Paper: CEPR ID: DP1723
Authors: Bernard Hoekman; Simeon Djankov
Abstract: This paper investigates the activities of the Bulgarian competition office, the Commission for the Protection of Competition, during 1991?5. Descriptive statistics are provided on the industry incidence of investigations, the types of behaviour that were investigated, and the frequency with which violations were found and penalties imposed. Although the Commission has attempted to concentrate its efforts in non-tradable sectors and target both cartel and abuse of dominance cases, the remedies that are imposed appear rather ineffective. Moreover, instead of hard core anti-competitive behaviour, much of the Commission?s activities have centred on ?unfair? competition (e.g. false advertising, trademark infringement, and the behaviour of ex-employees of specific enterprises). Recently proposed amendments to the law should go some way towards allowing the Commission to focus more narrowly on anti-competitive practices and to strengthen the deterrent effect of the law.
Keywords: competition law; antitrust; Bulgaria; economies in transition
JEL Codes: K21; L40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| CPC's enforcement strategies (K42) | ineffectiveness of penalties (K40) |
| judicial system (K40) | ineffectiveness of penalties (K40) |
| CPC's focus on unfair competition (L41) | diversion of resources from critical enforcement areas (H76) |
| law's provisions restricting mobility of managers (J62) | reduction in competition (L49) |
| CPC's focus on unfair practices (L41) | backlog in court cases (K41) |
| backlog in court cases (K41) | reduction in effectiveness of competition law enforcement (K21) |