Latest updates

New labour inspection rules enter into force
Schoenherr
  • Employment & Immigration
  • Hungary
  • 17 March 2021

The new Act on Labour Inspection, Employment Services and Grants recently entered into force, replacing the old Act on Labour Inspection. While the new act contains similar rules, there are some novelties. This article summarises what employers and employees need to know.

Spar will create opportunities for local small producers as redress for abuse of significant market power
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 28 January 2021

The 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
Schoenherr
  • Competition & Antitrust
  • 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?
Schoenherr
  • Competition & Antitrust
  • 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
Schoenherr
  • Competition & Antitrust
  • 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.

Limited stay-at-home orders and travel restrictions: what are you allowed to do?
Schoenherr
  • Employment & Immigration
  • 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.

Investigation into TikTok – HCA takes on the tech world
Schoenherr
  • Competition & Antitrust
  • 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
Schoenherr
  • Competition & Antitrust
  • 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.

COVID-19 travel restrictions are back
Schoenherr
  • Employment & Immigration
  • 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
Schoenherr
  • Employment & Immigration
  • 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
Schoenherr
  • Employment & Immigration
  • 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?

HCA imposes record fine on Booking.com for unfair commercial practices
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 02 July 2020

The 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
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 21 May 2020

Parliament 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.

Legal implications of remote working – opportunity or threat?
Schoenherr
  • Employment & Immigration
  • 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.

COVID-19: competition law considerations for businesses
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 07 May 2020

The 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.

Employment contracts and COVID-19
Schoenherr
  • Employment & Immigration
  • Hungary
  • 06 May 2020

COVID-19 has created completely new challenges in the employment sector. As there is significant uncertainty and a need for detailed information about the situation, this article provides a timeline of employment-related measures that have been introduced to combat COVID-19 in Hungary.

COVID-19 and new employment measures
Schoenherr
  • Employment & Immigration
  • Hungary
  • 15 April 2020

The appearance and spread of COVID-19 in Hungary has made extraordinary measures necessary. The government has declared a state of emergency and new measures have been adopted. This article summarises the key information for employers with regard to COVID-19.

Increased fines – HCA targets telecom companies
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 12 March 2020

In 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
Schoenherr
  • Competition & Antitrust
  • Hungary
  • 19 December 2019

Since 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.

Supreme Court rules on compensation for post-termination non-compete agreements
Schoenherr
  • Employment & Immigration
  • Hungary
  • 02 October 2019

Companies often use non-compete agreements to prevent highly skilled employees from using their know-how in favour of competitors following their termination. The Supreme Court recently addressed various questions relating to the compensation paid to employees for post-termination non-compete agreements. This article examines this topic in light of the Supreme Court's recent guidelines and a recent decision which led to debate among practitioners.