Sofia, May 13 (BTA) - A three-judge panel of Bulgaria's Supreme
Administrative Court (SAC) on Thursday revoked a decision of
2018 by which the Commission for Protection of Competition (CPC)
 banned a business concentration that would have taken place if
Inercom Bulgaria gained control over the Bulgarian businesses of
 Czech energy group CEZ.

The judgment can be appealed before a five-judge panel of the
same court.

The SAC found that the CPC decision was legally non-conforming
and procedurally flawed and decided to return the case file to
the CPC for a new pronouncement in compliance with the Court's
binding requirements for interpretation and application of the
law.

The Supreme Court determined that the solar power market share
of Inercom and CEZ combined (2.517 per cent) would be
insufficient to justify a possible market dominance, which could
 be achieved at a share of at least 15 per cent-plus.

In July 2018, the anti-trust regulator blocked CEZ's attempt to
sell its electricity distribution and supply operation in
Western Bulgaria to Pazardjik-based Inercom Bulgaria EAD,
arguing that the buyer would thus obtain a dominant position on
the electricity market because of the solar power generation
business it owned. While Inercom and the CPC argued over the
matter, the time limit for finalizing the sale expired and the
Czech group cancelled it.

Later on, in June 2019 CEZ signed a contract for the sale of its
 Bulgarian business for 335 million euro to insurance company
Eurohold Bulgaria EAD. In October, the CPC refused to clear that
 transaction, too, finding that merging the experience, economic
 resources and market positions of the companies in the
electricity and insurance markets would considerably hinder
effective competition on the respective markets. The anti-trust
watchdog suspected that the new owner could furnish guarantees
to the energy companies when trading in electricity on the
exchange. That decision was appealed before the Sofia
Administrative Court, which found a number of irregularities and
 returned it to the Competition Commission for re-examination.
In late October 2020, the CPC ultimately approved the transfer,
and its finalization is now in progress.

CEZ's assets in Bulgaria comprise the CEZ Distribution Bulgaria
electricity distribution company, the CEZ Electro Bulgaria power
 supplier, the CEZ Trade Bulgaria licensed electricity trader,
the CEZ ICT Bulgaria IT service provider, the Free Energy
Project Oreshetz solar park, the Bara Group biomass-fired power
plant, and CEZ Bulgaria. NV/LG