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The Commission for the Protection of Competition (CPC) has opened an investigation on whether “Fronery Bulgaria” Ltd. is abusing its market position regarding frozen products and as such is in violation of the existing legal norms. This has been made clear in a statement by the regulatory body. The proceedings have been opened based on a signal from the companies “Ice-cream Bulgaria” and “Escimo”. 

“Fronery Bulgaria” has been operating in the Bulgarian market since 2016, the part of the international network “Froneri Group”, dealing with the production and trade of ice cream, frozen cakes, and frozen vegetables, under the Nestle Ice-cream and Mondelez brands. CPC will investigate whether the conduct of the company, in connection with the distribution of ice cream products, could be interpreted as imposing and abusing a monopoly on the market, thereby eliminating or hurting the competition. According to the initial information, the anti-competition behavior is reported to be related to actions in the capital city of Sofia only. 

However, according to the other sources, there have been further signals received, showing parallel behavior that the same behavior is observed in the entire country and there could be serious infringements. It was stated that the actions in question could, as a consequence could lead to discontent and market turmoil between the producers of frozen products, and between the distributor’s chains at the national level as well. With this in mind, CPC will make an investigation and produce a report on whether “Fronery Bulgaria” has operated in prohibited vertical agreements, that includes members of the network for the distribution of frozen foods and ice cream.

If proven so, the company could face serious financial penalties, including both a lump sum of money or a percentage of the turnover or any combination that CPC sees as adequate to punish such illegal behavior.