Archive for November, 2005

The Supreme Administrative Court Confirmed Nullity of a Decision of the National Health Insurance Fund Regarding the Medicinal Products in the Reimbursement List

Friday, November 25th, 2005

With a Decision of November 22, 2005, the Bulgarian Supreme Administrative Court (SAC) confirmed the earlier decision of the Sofia City Court on declaring null and void a decision of the Management Board of the National Health Insurance Fund (HIF) as taken outside the scope of competence of the HIF and in contradiction with the applicable procedure for amendments to the reimbursement list. The decision of the HIF was appealed before the first instance court by the Association of the Researching Pharmaceutical Producers (ARPharM), the Association of the American Pharmaceutical Companies at the American Chamber of Commerce in Bulgaria and the Bulgarian Association for Protection of Patients, all represented by Kina Chuturkova, Partner at Borislav Boyanov & Co. The Courts essentially found that no changes in the reimbursement list could be made unilaterally by HIF, because the reimbursement list is an integral part of the effective annual National Framework Agreement between the NIF and the national associations of humanitarian doctors and of dentists, hence, any changes should be made jointly by the parties to that agreement and only in compliance with the statutory procedure for its amendment.

Managing Partner Borislav Boyanov Elected Vice President of BIBA

Tuesday, November 22nd, 2005

The Managing Partner of Borislav Boyanov & Co., Mr. Boyanov was elected Vice President of the Bulgarian International Business Association (BIBA) at the meeting of the Managing Board held on 21 November 2005. BIBA is one of the most influential business associations in Bulgaria. Presently, BIBA has more than 250 members from 27 countries – representatives of the most prominent companies in Bulgaria.

The Third GSM Mobile Operator Started Operation

Tuesday, November 8th, 2005

The third GSM operator BTC Mobile, the mobile telecommunications arm of the incumbent telecommunications operator BTC, commenced the provision of its services under the trade mark Vivatel on November 5, 2005. Vivatel decided to enter the market by initially offering prepaid services to individuals and two subscription packages with different subscription plans to corporate customers.

The Bulgarian Competition Authority Cleared the UniCredit/HVB Concentration

Tuesday, November 8th, 2005

The Bulgarian Commission on Protection of the Competition (CPC) cleared unconditionally the concentration between UniCredito Italiano SpA (UCI) and Bayerische Hypo- und Vereinsbank AG (HVB), and respectively, the indirect acquisition of sole control on the part of UCI over the HVB controlled Bank Austria Creditanstalt AG, Austria and Bank BPH SA, Poland. The CPC has found that the concentration does not result in the creation or strengthening of dominant position and will have a number of positive effects in the relevant markets and for the Bulgarian economy in general. The CPC also permitted the advance execution of the clearance decision.

Borislav Boyanov & Co. in cooperation with the Brussels and Dusseldorf offices of Freshfields Bruckhaus Deringer advised UCI on the competition law aspects of this landmark transaction, paving the way for the creation of a single European market for banking and financial services, by creating the first truly European bank.

The Tender for 3 Individual Point to Multipoint Licenses Completed

Tuesday, November 1st, 2005

Bulgarian Telecommunications Company (BTC), Nexcom Bulgaria and Orbitel are the successful bidders for the three individual “point to multipoint” (PMP) telecommunications licenses Class B for scarce resource of 10.5 megahertz each. Six companies (BTC, Mobiltel, Nexcom Bulgaria, Carrier BG, Orbitel and Gity Bulgaria) bid for the three licenses on a tender that started on October 25, 2005 and ended on October 31, 2005. The tender started with initial price of BGN 672,000 and ended at the winning price of BGN 6,172,000, i.e. more than nine times the initial price. The licenses will entitle their holders to provide wireless transfer of voice, data, video and interactive services. The first tender for the two individual Class A PMP telecommunications licenses took place on October 11 and 12, 2005 and the final price of over BGN 5 million exceeded four times the initial one.