Competition Law at Hungary
Sure! Here's an overview of Competition Law in Hungary:
Competition Law in Hungary
Hungary’s competition law framework is designed to ensure fair market competition and to prevent practices that could harm consumers or the economy. It is primarily regulated by:
1. Hungarian Competition Act (Act LVII of 1996 on the Prohibition of Unfair Market Practices and on the Control of Concentrations)
This is the main legislation governing competition in Hungary.
It aims to prevent anti-competitive agreements, abuse of dominant market positions, and regulates mergers and acquisitions that may impact competition.
2. Hungarian Competition Authority (Gazdasági Versenyhivatal - GVH)
The GVH is the main regulatory body enforcing competition law.
It investigates and penalizes anti-competitive behavior.
It also reviews mergers and acquisitions for potential anti-competitive effects.
Key Aspects of Hungarian Competition Law
a. Prohibition of Anti-competitive Agreements
Agreements between companies that restrict competition (e.g., price-fixing, market-sharing, output limitation) are prohibited.
Some agreements can be exempted if they improve production or distribution, or promote technical or economic progress without eliminating competition.
b. Abuse of Dominant Position
Companies holding a dominant market position are prohibited from abusing it.
Abuse includes unfair pricing, limiting production, or imposing unfair trading conditions.
c. Merger Control
The GVH must approve mergers and acquisitions above certain thresholds.
The GVH assesses whether the merger would significantly impede competition.
Enforcement and Penalties
The GVH can impose fines for violations.
It can order the cessation of illegal conduct.
Companies and individuals can appeal GVH decisions in Hungarian courts.
Relationship to EU Competition Law
Hungary, as an EU member, applies both national competition law and EU competition law (Articles 101 and 102 TFEU).
The GVH cooperates with the European Commission and other national competition authorities.
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