Archive for December, 2003

Borislav Boyanov & Co. Successfully Prosecute Competition Violation of Zagorka AD on behalf of Kamenitza AD

Tuesday, December 30th, 2003

Borislav Boyanov & Co. represented Kamenitza AD (one of the largest beer producers in Bulgaria) in a complaint for unfair competition filed by it against Zagorka AD (another large beer producer in Bulgaria) with the Commission on the Protection of Competition (CPC). As a result of the complaint the CPC initiated proceedings and imposed a monetary sanction on Zagorka for unfair attraction of clients to the amount of BGN 150,000 – the biggest sanction imposed by the CPC so far. The complaint was initiated against the Ariana beer promotion under the slogan “Ariana. For every lucky person”. The value of all prizes in the lottery were considerably exceeding the value of an Ariana bottle. The CPC accepted that the possibility to participate in the promotion without a proof of purchase is a mere circumvention of the law. This is supported by the fact that most of the prizes with a value of around BGN 5,000 and the big prize of BGN 50,000 have been won by people that have purchased the Ariana beer (i.e., have participated in the promotion through a proof of purchase).

Tuesday, December 30th, 2003

Borislav Boyanov & Co. represented Kamenitza AD (one of the largest beer producers in Bulgaria) in a complaint for unfair competition filed by it against Zagorka AD (another large beer producer in Bulgaria) with the Commission on the Protection of Competition (CPC). As a result of the complaint the CPC initiated proceedings and imposed a monetary sanction on Zagorka for unfair attraction of clients to the amount of BGN 150,000 – the biggest sanction imposed by the CPC so far. The complaint was initiated against the Ariana beer promotion under the slogan “Ariana. For every lucky person”. The value of all prizes in the lottery were considerably exceeding the value of an Ariana bottle. The CPC accepted that the possibility to participate in the promotion without a proof of purchase is a mere circumvention of the law. This is supported by the fact that most of the prizes with a value of around BGN 5,000 and the big prize of BGN 50,000 have been won by people that have purchased the Ariana beer (i.e., have participated in the promotion through a proof of purchase).

New Bulgarian Legislation

Monday, December 15th, 2003

A new Energy Act adopted by Parliament on November 26, 2003 was promulgated in State Gazette, Issue 107 of December 9, 2003. The new law repeals the Energy and Energy Efficiency Act of 1999 (State Gazette, Issue 64 of July 16, 1999, as amended).

The Bulgarian National Bank adopted new regulation on the internal audit of banks (Regulation No. 10 of November 26, 2003, promulgated in State Gazette, Issue 108 of December 12, 2003). The new Regulation repeals Regulation No. 10 on the internal audit of banks of 1993 (State Gazette, Issue 51 of 1993). The Central Bank also adopted a regulation on amendment and supplement of its Regulation No. 2 on the Licenses and the Authorisations issued by the Bulgarian National Bank (State Gazette, Issue 14 of 2000, as amended).

The Commission on Financial Supervision adopted Regulation No. 8 of November 12, 2003 on the Central Depository for Securities (promulgated in State Gazette, Issue 108 of December 12, 2003). The Regulation provides for the structure and the activity of the Central Depository for Securities as well as the state supervision to be exercised upon it.

HeidelbergCement is Selling its Operations in Bulgaria

Tuesday, December 9th, 2003

Borislav Boyanov & Co. provided legal assistance to HeidelbergCement AG, Germany in connection with the divestment of its Bulgarian subsidiaries in the cement, concrete and aggregate businesses to the Greek company Titan Cement Company S.A. The Share Purchase Agreement was signed on December 8, 2003. We provided full legal support and services to HeidelbergCement during the negotiations and signing process. The transaction will be completed after Titan Cement Company S.A. obtains clearance of the deal by the Bulgarian Commission on the Protection of the Competition.