Anna Turi
Updates
Competition & Antitrust
Spar will create opportunities for local small producers as redress for abuse of significant market power
Hungary | 28 January 2021The Hungarian Competition Authority's (HCA's) recent decision in an abuse of significant market power case against Spar has created a forward-looking solution which is unprecedented in such cases. As a proactive reparation for the competition infringement and in order to avoid an HCA fine, the supermarket chain will develop a new regional supply system. The programme will have a budget of HUF1.7 billion and will not only improve small producers' sales opportunities, but also create new jobs.
Future Hungarian 'superbank' exempted from merger control scrutiny
Hungary | 14 January 2021The planned merger of three banks into a new Hungarian bank holding (a so-called 'superbank') was announced in Spring 2020. Normally, such a merger would require competition authority approval. However, the government has issued a decree exempting the superbank's merger from competition scrutiny. The government held that the measure was required from a public interest standpoint in order to boost the Hungarian financial sector's competitiveness.
More pressure selling in hotel booking sector – cooperation with HCA prevents substantial fine
Hungary | 29 October 2020Following the first market study in the consumer protection field in 2019 relating to the application of digital comparison tools, the Hungarian Competition Authority did not hesitate to apply its findings in practice. In early 2020 it imposed a record fine on Booking.com BV for unfair commercial practices. This has now been followed by a decision that Szallas.hu, the biggest local market player and a main competitor of Booking.com, engaged in unfair practices. However, this time, no fine was imposed.
HCA imposes record fine on Booking.com for unfair commercial practices
Hungary | 02 July 2020The Hungarian Competition Authority (HCA) recently imposed a record fine on Booking.com BV for undertaking unfair commercial practices by misleadingly advertising certain hotel rooms with "free cancellation" and engaging in pressure selling. Although a surprise for many industry players, this decision aligns with the HCA's tendency to impose significantly higher fines in unfair commercial practice cases compared with previous years.
Upcoming amendments to Competition Act
Hungary | 21 May 2020Parliament recently adopted a new act to ensure that the Competition Act fully complies with EU Directive 2019/1/EU (ECN+ Directive). The Hungarian legislature has chosen to apply most of the ECN+ Directive rules to all antitrust proceedings (ie, regardless of whether they are conducted under Hungarian or EU law). However, in certain cases, the scope of the new provisions will be limited to proceedings on an EU legal basis.
COVID-19: competition law considerations for businesses
Hungary | 07 May 2020The government recently declared a state of emergency in connection with the COVID-19 pandemic and issued a special legal order. To date, no provision has been adopted under the special legal order allowing for a special exemption from the rules of competition law. Affected undertakings must therefore continue to pay attention to competition compliance. This article aims to help companies meet these requirements in view of the European Competition Network's recommendations.
Increased fines – HCA targets telecom companies
Hungary | 12 March 2020In the past three months, three telecom giants received unexpectedly heavy fines from the Hungarian Competition Authority (HCA) in consumer protection cases. In 2019 the HCA imposed more fines in total for unfair commercial practices against consumers than in cartel cases and, on the basis of its recent decisions, it looks likely to do the same in 2020. These recent decisions also show that repeated infringements are now subject to a stricter assessment.
Rising focus on HCA settlement proceedings – case law round-up
Hungary | 19 December 2019Since 1 July 2014, companies have been able to initiate settlement proceedings with the Hungarian Competition Authority (HCA). Recent case law suggests that the HCA has aimed to foster cooperation between itself and market participants and is striving for cooperation even when market participants allegedly commit grave infringements of competition rule commitments.
Compensating consumers may save reputation
Hungary | 19 September 2019Misleading business-to-consumer information may lead to significant fines. Two recent Hungarian Competition Authority (HCA) decisions prove that the HCA has maintained its position as a watchdog of both consumer rights and fair competition. In both cases, the companies were investigated by the HCA because they had omitted to tell customers important information, thereby harming them.
By cash or card? HCA releases findings of sector inquiry into bank card acceptance market
Hungary | 15 August 2019In 2017 the Hungarian Competition Authority (HCA) initiated a sector inquiry into the bank card acceptance market. Although the market was found to be competitive and functioning in accordance with the relevant regulations, the HCA has made a number of recommendations to both the legislature and market players in order to stimulate further growth.
Digital consumer protection in action – HCA launches market study into digital comparison tools
Hungary | 09 May 2019The Hungarian Competition Authority (HCA) has launched a market study to explore the specific market developments relating to the application of digital comparison tools and their effects on consumers' decision making. The market study puts the HCA's mid-term digital consumer protection strategy paper into action and demonstrates the HCA's recent focus on consumer protection and efforts to serve as a lighthouse in the digital age.
HCA's recent practice: cooperation and commitments
Hungary | 20 September 2018In recent years, the Hungarian Competition Authority (HCA) has seemingly aimed to foster cooperation between itself and market participants. Recent case law shows that the HCA strives for cooperation even when market participants allegedly commit grave infringements of the competition rules. Market participants are advised to harness this tendency and the HCA's willingness to reach decisions more efficiently.
Influencers have been targeted by the HCA, but what about buying followers?
Hungary | 05 July 2018With the global development of the Internet, life has changed radically in just a few decades, and legislation can barely keep up. The Hungarian Competition Authority (HCA) has been monitoring developments and has not been afraid to intervene in the interests of fair competition and the protection of consumer rights. Influencers have recently been targeted by the HCA, especially regarding their promotional activity.
Compliance and compensation in consumer protection cases: the Vodafone example
Hungary | 01 February 2018A recent Hungarian Competition Authority (HCA) decision concerning Vodafone demonstrates that a reasonable cooperative approach may significantly affect the level of fine imposed on an undertaking, as the HCA reduced the fine imposed on Vodafone by more than 50% based solely on its cooperative measures. Although this case is unique, it signals that compliance and cooperation efforts which exceed the necessary legal requirements do not go unnoticed.
HCA uses new investigative tool under merger control regime
Hungary | 30 November 2017The Hungarian Competition Authority (HCA) was recently given significant new investigative powers under the framework of its merger control duties. Should parties decide not to submit a voluntary filing when meeting the voluntary notification threshold, the HCA can initiate an investigation on its own accord and undertake a fully fledged merger control proceeding. The HCA recently announced that it has commenced its first such ex officio merger control investigation.
Legality of large retail chains' use of rebates remains dubious
Hungary | 24 August 2017Following a Hungarian Competition Authority (HCA) decision that its rebate system violated the Trade Act, retail chain Spar went all the way to the Supreme Court. All judicial forums upheld the HCA's decision and the illegality of such rebates seemed to be settled. However, the Budapest Metropolitan Court recently overturned another HCA decision, which was somewhat surprising considering that the Supreme Court had already upheld the HCA's decision in the relatively similar Spar.
HCA steps up against bid rigging in public procurement
Hungary | 06 July 2017Public procurements are often targets for bid rigging and the Hungarian authorities and legislature have made extra efforts to fight this kind of behaviour. While it is not the primary authority for monitoring public procurements, the Hungarian Competition Authority (HCA) is one authority fighting anti-competitive behaviour in public procurement. Besides investigating violations, the HCA is also taking steps towards prevention and raising awareness.
OnDemand: Competition and antitrust in the digital age
Hungary | 25 May 2017In recent years, the digital market has expanded rapidly in Hungary in almost every sector. Numerous companies (eg, Uber and AirBnb) have entered the Hungarian market and significantly changed the landscape of entire sectors with their innovative services. The possible competition law issues concern the fact that these new innovative companies can quickly achieve a dominant position. Further, in some sectors, online platforms used by third parties can restrict competition between users.
Implementation of EU Antitrust Damages Directive
Hungary | 18 May 2017An important part of the recent major amendment to the Competition Act was the timely implementation of the EU Antitrust Damages Directive into Hungarian law. While it was already possible to claim damages for a competition law infringement under Hungarian law, the directive's implementation introduced special rules for damages claims arising out of competition law infringement and the enforcement of such claims. It also introduced several solutions which are new to Hungarian law.
Information cartels: a guide for undertakings
Hungary | 03 March 2016The Hungarian Competition Authority recently imposed one of its highest-ever fines on the Hungarian Banking Association for the anti-competitive exchange of information. Evidently, even activities in which market participants regularly engage and which they regard as lawful may help to reduce uncertainty in the market. This update provides an insight into anti-competitive information exchanges in order to minimise this risk.
The lofty promises (and drawbacks) of the leniency programme – guidelines for applicants
Hungary | 28 January 2016The Hungarian Competition Authority (GVH) recently launched a promotion campaign for its leniency programme, emphasising that "a cartel will not stay hidden, but one may get away with a leniency application". In light of these great efforts on the GVH's part, it is crucial to examine the benefits and drawbacks of the leniency programme from the undertaking's perspective.
New notice on settlement procedure – an offer one cannot refuse?
Hungary | 17 December 2015Swift, simple and less burdensome proceedings with a 10% reduction in fines – these are the benefits that the Hungarian Competition Authority chose to emphasise in its recent notice on the settlement procedure. Although the notice generally aligns with the relevant EU rules, it contains noteworthy deviations which may fundamentally affect its application.
New amendments to Competition Act – further exceptions to cartel fines
Hungary | 02 July 2015Parliament recently adopted amendments to the Competition Act to reflect the practical lessons learned from the application of the rules which came into force in July 2014. The amendments introduce noteworthy exceptions to the cartel prohibitions. Some of these rules signal a more lenient approach towards certain competition law infringements, while others support more rigorous enforcement (eg, in bid-rigging cases).
Competition Authority fines Auchan €3.3 million for breach of trade rules
Hungary | 11 June 2015The Competition Authority has imposed a fine of more than Ft1 billion (more than €3.3 million) on retailer Auchan for abusing its significant market power under the Trade Act – the highest fine that it has ever imposed in the sector. The decision signals that the Competition Authority is likely to be harsh on retail chains for similar abuses in future.
