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Articles contributed by Djingov, Gouginski, Kyutchukov & Velichkov
Telecom chapter about Bulgaria with the Global Legal Group - International Comparative Legal Guide, Telecom series, 2011 edition
Merger Control, Chapter about Bulgaria with the Getting the Deal Through - Merger Control series, 2011 ed.
DGKV Tax Newsletter of March 2011
Bulgaria Employment Framework 2011
What is the relevant legislation and who enforces it? The statutory act setting out the legal framework for merger control is the Law on the Protection of Competition (LPC) (promulgated on 28 November 2008 and effective as of 2 December 2008). The LPC aims to harmonise the domestic regulatory framework with Council Regulation No. 1/2003 and Council Regulation No. 139/2004. It introduces a number of changes compared to the regulatory regime under the abolished Law on Protection of Competition (LPC 1998). In the field of merger control the LPC introduces a new merger control threshold. It sets out in more detail the procedure for review and assessment of concentrations and provides a clear time frame for completion of merger control investigations.
Has Bulgaria fully implemented the EU 2003 regulatory framework? If Bulgaria has not fully implemented the new regulatory framework, have proceedings been brought against Bulgaria by the European Commission and if so, for which contraventions?
On 14 November 2008 Bulgarian Parliament adopted new Law on the Protection of Competition (“LPC”), which was promulgated on 28 November 2008 and entered into effect on 2 December 2008. The LPC aims to harmonize the domestic regulatory framework with Council Regulation No. 1/2003 and Council Regulation No. 139/2004. It introduces a number of changes as compared to the regulatory regime under the abolished Law on Protection of Competition (“LPC 1998”). In the field of investigations of prohibited agreements and abusive unilateral conduct, the LPC abolishes the procedure for grant of individual exemptions of prohibited agreements and aligns the de minimis exemption thresholds with those under Council Regulation 1/2003.
The Bulgarian telecommunications market was liberalised on 1 January 2003. The Law on Electronic Communications (published in State Gazette issue 41 of 22 May 2007, the "LEC") transposes the principles set out in the EU 2002 regulatory framework. The full implementation of the EU regulatory framework is an on-going process as the adoption of the requisite secondary legislation progresses.
The primary legal act regulating bankruptcies and reorganisations of commercial companies is the Law on Commerce. Certain businesses, however, have their own specific legislation on the matter: bankruptcies and reorganisations of banks are regulated by the Law on Bank Insolvency; insurers – by the Insurance Code; and pension funds and pension fund managing companies – by the Social Security Code.
The Bulgarian telecommunications market was liberalised on 1 January 2003. Recently adopted Law on Electronic Communications (published in State Gazette issue 41 of 22 May 2007, the “LEC”) transposes the principles set out in the EU 2002 regulatory framework. The full implementation of the new regulatory framework will be accomplished upon adoption of the requisite secondary legislation.
Over time, direct privatisation (as opposed to PPP projects) has gained importance for the development and restructuring of the Bulgarian energy sector. Recent practical experience shows that a successful direct privatisation of a power generation asset depends largely on the following milestones: (i) appropriate privatisation strategy; (ii) availability of purchase price enhancement mechanisms; and (iii) efficient bidding process and reasonable negotiations.Although not all of these factors are properly addressed during the different stages of the process, the practice shows that the more efforts are devoted to each of them, the less “broken deals” remain in the statistics.