Hungary, Schoenherr updates

Competition & Antitrust

Contributed by Schoenherr
Future Hungarian 'superbank' exempted from merger control scrutiny
  • Hungary
  • 14 January 2021

The 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.

Compliance and competition enforcement in sales and promotions – where does Black Friday guide us?
  • Hungary
  • 10 December 2020

The Hungarian Competition Authority (HCA) is one of the few competition enforcers in Europe with a prominent consumer protection enforcement practice. The HCA's holiday sales practice has tremendous potential to aid companies which aim to throw large-scale sales but at the same time intend to avoid large-scale fines. This article distils the HCA's recent practice into clear guidelines in order to assist companies with any sales or promotional campaigns.

HCA receives boost in enforcement against large retail chains
  • Hungary
  • 03 December 2020

In 2015 the Hungarian Competition Authority (HCA) imposed a staggering fine on Auchan for abusing its significant market power. The HUF1,06 billion (approximately €3 million) fine is the highest ever imposed by the authority for the infringement of the Trade Act. Although the decision is from 2015, the Hungarian courts have only now put an end to the judicial review. The Supreme Court recently upheld the HCA's decision in its entirety.

Investigation into TikTok – HCA takes on the tech world
  • Hungary
  • 12 November 2020

The Hungarian Competition Authority (HCA) recently initiated an investigation into TikTok, the popular social media platform. TikTok's capacity to generate vast amounts of consumer data and shower its users with ads has already sounded several alarm bells as regulators attempt to make sense of the phenomena that is digitalisation. The HCA took the initiative to scrutinise the platform with a focus on consumer protection.

More pressure selling in hotel booking sector – cooperation with HCA prevents substantial fine
  • Hungary
  • 29 October 2020

Following 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.


Employment & Immigration

Contributed by Schoenherr
Limited stay-at-home orders and travel restrictions: what are you allowed to do?
  • Hungary
  • 02 December 2020

As of 4 November 2020 and 11 November 2020, the government introduced new COVID-19 restrictions, including the limited order to stay at home between 8:00pm and 5:00am. The law treats employment and business-related travel as a key exception from the rules. Thus, for business purposes, not only is cross-border travelling allowed, but so is travelling during curfew hours.

COVID-19 travel restrictions are back
  • Hungary
  • 14 October 2020

Pursuant to Government Decree 408/2020 (VIII 30), Hungary closed its borders to non-Hungarian citizens as of 1 September 2020. The new rules abolish the tricolour system of green, yellow and red countries and qualify virtually all countries as red. Reclosing Hungary's borders appears to be a straightforward measure to fight the pandemic on the one hand, but on the other, there is a risk of going against the European Union's basic principle of free movement. But is that the case here?

Access to employee emails – enhanced authority control
  • Hungary
  • 12 August 2020

More than two years after the EU General Data Protection Regulation's entry into force, employers' access to employee email accounts still raises several questions. This has been highlighted by three recent cases in which the Hungarian Data Protection Authority imposed fines on employers in connection with their access to employee mailboxes. This article summarises the legal situation regarding professional email accounts and sets out the key takeaways from the authority's decisions.

Travel restrictions are back
  • Hungary
  • 29 July 2020

Following a few weeks of travel restrictions easing, the government has adopted new rules for travellers to Hungary in light of the COVID-19 pandemic. The new rules apply to travellers with private passports; therefore, freight traffic is exempt. Do holiday bookings and business trips need to be put on hold yet again?

Legal implications of remote working – opportunity or threat?
  • Hungary
  • 20 May 2020

What seemed hardly imaginable months ago has become a reality as a result of the COVID-19 pandemic: sizeable teams in various companies had to switch to remote working within a few days and have now been working remotely for several weeks. This article highlights some of the legal challenges caused by the sudden introduction of remote working.


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