Bulgaria’s competition watchdog has concluded a preliminary investigation into potential barriers to entry in the road and railway construction sector, finding no evidence that existing legal requirements create anti-competitive obstacles for companies seeking to participate in major infrastructure projects.
The study, conducted by the Commission for Protection of Competition (CPC), was launched following complaints from municipal councillors in Sofia and a representative of the infrastructure sector who argued that certain entry requirements for public procurement contracts were restricting competition.
At the centre of the concerns was the widespread practice of contracting authorities requiring bidders for large road, motorway and railway construction tenders to be registered in Bulgaria’s Central Professional Register of Builders. Complainants argued that registration requirements, coupled with experience criteria established under the Law on the Chamber of Builders, could limit market access for new entrants.
However, after reviewing the regulatory framework, the CPC found that such requirements are consistent with European Union public procurement rules. The authority noted that Directive 2014/24/EU permits contracting authorities to require economic operators to hold specific licences or memberships where these are necessary to perform the relevant services in their home jurisdiction.
The watchdog also pointed out that Bulgarian law requires companies carrying out construction works in categories one through five to be registered in the builders’ register, and that undertaking such work without registration would constitute a legal violation.
Information provided by the Chamber of Builders in Bulgaria indicated that companies have multiple ways of demonstrating the experience needed for registration in the transport infrastructure category, including experience gained outside the road and railway sectors. According to the chamber, no applications for registration in this category have been rejected during the past three years.
The CPC further emphasised that the Public Procurement Act merely allows contracting authorities to require registration in the builders’ register and does not make such a requirement mandatory. Given the importance of ensuring the quality and safety of transport infrastructure, the authority concluded that the experience criteria cannot be regarded as disproportionate or excessive.
As a result, the commission found no anti-competitive barriers to market entry arising from either the Public Procurement Act or the Law on the Chamber of Builders.
The announcement marks the first time the CPC has exercised its powers under Bulgaria’s competition law to publish the results of a preliminary market study examining potential anti-competitive barriers to entry in a specific sector.
The authority said the investigation forms part of its broader efforts to assess whether regulatory or administrative requirements may unnecessarily restrict competition in key markets.
Source: https://www.cpc.bg/news-502
