Romanian retailer eMAG, fined EUR 388,000 by the Bulgarian competition body

The Bulgarian Competition Protection Commission (CPC) fined Romanian online retailer eMAG with a total of EUR 388,000 for breaching competition practices during two promotional campaigns, according to Bulgarian newspaper Sofia Globe. CPC said that Romanian firm Dante International, which owns online retailer eMAG, engaged in unfair trade practices when setting prices and offering discounts as part of the Black Friday campaign. The regulator also said the campaign slogans which said that customers had the largest number and highest price discounts on Black Friday were misleading customers. The investigation targeted eMAG’s 2013 Black Friday sales event, but the decision came just after before the 2014 Black Friday in Bulgaria. eMAG’s representatives said it’s not a coincidence that this communication was made on Friday, November 28, the date at which eMAG had its Black Friday 2014 sales event in Bulgaria. “We interpret this fact as a response to our offers and good prices for the Bulgarian consumers, which put a lot of pressure on local competitors,” said Iulian Stanciu, eMAG’s CEO. The CPC also fined eMAG for a separate campaign earlier this year, in which the retailer offered customers who bought a Tassimo coffee machine a second one free of charge. The regulator said that the offer exceeded the value limits on additional incentives as part of a sales event allowed by Bulgarian law and was “liable to skew the competitive environment”, according to Sofia Globe. “The decision of the Bulgarian control authorities is abusive and unjust. We will contest it, and, according to our lawyers’ opinion, we will definitely get its dismissal and we won’t pay anything,” said Iulian Stanciu, eMAG’s CEO. He added that for the Tassimo campaign, eMAG was fined EUR 105,000, while the company sold only six coffee machines, worth EUR 1,000. eMAG is Romania’s largest online retailer. It had a turnover of over EUR 180 million in 2013 and this year expects a 50% growth in sales. The retailer sold some EUR 37 million worth of products in its Black Friday sales event this year. editor@romania-insider.com