The Competition Authority issued 28 merger control clearance decisions in 2016, conducted one dawn raid and implemented no fines. The authority has announced that, with the help of the EU Delegation to Montenegro, it plans to purchase forensic software and technical equipment in 2018 which will allow it to continue its investigation activities.
Organisations with legal entities and employees in several EU member states often try to centralise their human resources (HR) functions to some extent, which occasionally requires them to share employee and HR data within their group. Although existing Hungarian law provides a stable legal environment with clear rules for employers as data processors, there is a general feeling of uncertainty around this topic, which is partly due to the upcoming entry into force of the EU General Data Protection Regulation.
With the introduction of the Damages Act, the Czech Republic has finally implemented the EU Damages Directive, which establishes common EU rights for cartel victims seeking damages. The Damages Act introduces many novelties into national law, which aim to improve the procedural status of citizens and businesses that claim compensation before the national courts for damages caused by an infringement of EU or national antitrust rules.
Parliament recently passed a new law on the registration of beneficial owners of Austrian legal entities. After obtaining the necessary approval of the Austrian federal states, the law is expected to enter into force on January 15 2018. In disclosing the relevant information on beneficial owners, the register aims to detect and prevent money laundering, especially with regard to complex corporate structures, holding companies or private foundations and trusts.
The Competition Protection Agency recently opened an antitrust proceeding against Renault. According to the agency, there are grounds to believe that Renault abused its dominant position on the market for the provision of technical information and technical training to authorised and independent mechanics of its vehicles. Considering that only one year has passed since the agency initiated proceedings against Hyundai Avto Trade doo, the automotive industry appears to be under scrutiny.
Following 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.
E-Control recently published a draft of the amendment of the Gas Market Model Ordinance 2017. The envisaged amendment – and especially the newly implemented capacity conversion service – resolves the capacity mismatch issue by compensating network users for the economic disadvantages that arise from having to buy double capacity due to the bundling regime at interconnection points.
The Commission for the Protection of Competition (CPC) recently adopted an opinion on the draft act for the amendment of the Administrative Procedure Code. The CPC supports the introduction of electronic justice which, in its view, will increase the efficiency of the judiciary system and prevent unnecessary delays. However, it disagrees with the increase in state fees and the proposal that the state fee for cassation is to be defined as a percentage of the imposed penalty.
The Competition Authority recently initiated an investigation into the mobile phone market in connection with alleged coordinated practices and potential abuse of the dominant position of the market players. It had been alleged that three telecommunications operators had coordinated a change in standard pre-paid packages.
In 2016 the Competition Authority issued 52 decisions relating to merger control, abuse of dominance and restrictive practices. No fines were imposed in any of the decisions. The authority also reviewed and commented on numerous legislation proposals, including the production and marketing of tobacco and cigarettes and airport fees.
During 2016 the Competition Authority issued 111 merger control decisions. Most of the notifying parties involved were foreign companies, while notifications filed by domestic companies made up approximately 24% of all filed notifications. The Competition Authority, which proved to be one of the busiest in the region, also conducted a number of sector inquiries.
After four months of negotiations, the Austrian National Council has finally reached an agreement on the amendment of the Green Electricity Act. The required two-thirds majority was reached by a last-minute agreement between the coalition parties and the Green Party. The aim of the new legislation is to increase the percentage of green electricity and expand renewable energy in Austria.
The process for appointing new Competition Council members is now complete and operational. Specific and complex rules exist for the composition of the council and for it to pass decisions. Among other things, there must be two members representing each of the three constituent ethnic groups of Bosnia and Herzegovina (ie, two Serbs, two Bosnians and two Croatians).
The Constitutional Court recently reached a landmark decision and overturned the Federal Administrative Court decision which had rejected the permit for a third runway at Vienna International Airport on the grounds of climate protection and land use. This decision is significant in that it has far-reaching consequences for many other projects beyond the scope of the third runway. It is also relevant to Austria as a business hub.
The Commission for the Protection of Competition recently determined that two breweries were engaged in resale price maintenance. The breweries had entered into agreements that contained price-fixing provisions and distributors were allegedly restricted from independently determining resale prices.
Following an Agency for the Cooperation of Energy Regulators decision which foresees a split of the Austrian-German electricity market, the Austrian National Regulatory Authority, E-Control and the Austrian transmission system operators have announced that they plan to exhaust all legal possibilities in order to appeal the decision.
Public 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.
The Competition Authority recently determined that two edible sunflower oil market competitors (Vital and Victoriaoil) had concluded a restrictive agreement that limited the production of edible oil and inhibited competition on the market. The authority imposed a fine of 0.33% of the total annual turnover generated in 2014 on the Serbian market. This was the first production cooperation agreement analysed by the authority.
In 2016 the Competition Authority received 33 merger control notifications and issued 28 decisions. Most of the concentrations were in the telecommunications, media and pharmaceutical sectors. There was a slight decrease of approximately 6% in the number of merger control notifications submitted in 2016 in comparison to 2015.
Although the Labour Code fails to define a 'conflict of interest', its general principles prohibit employees from engaging in conduct which could jeopardise their employer's rightful economic interests. Depending on the circumstances, a conflict may constitute a severe violation of the employee's employment terms and can be punished appropriately. In other cases, a conflict may arise that is not the employee's fault, which can therefore be appropriately rectified without penalties.