Hungary: Sector inquiries in action: GVH's ongoing practice
Written By
Partner
Hungary
I am a partner and head of the Competition & EU and Projects & Energy teams of the Budapest office.<BR/><BR/>I focus on regulatory and competition matters in the energy sector, and also offer in-depth experience in tech & comms.
Trainee Associate
Hungary
I am a trainee associate in the Dispute Resolution, Competition & EU, and Projects & Energy teams of the Budapest office.
Senior Associate
Hungary
I am a senior associate in the Competition & EU team of the Budapest office, offering full range of competition law services to our clients both at Hungarian and EU level.
The Hungarian Competition Authority (GVH) has been actively working to safeguard consumers' welfare. This year, their focus has been on ensuring fair pricing and truthful advertising by businesses. Companies operating in Hungary are advised to exercise caution and stay updated on the GVH's evolving practices.
I. Report on the non-perishable food market
In our previous edition, among other topics, we have reported on the developments of the GVH’s sector inquiry on the non-perishable food market, which has now concluded.
In the report, the GVH makes several recommendations, including:
- the installation of modern and sustainable water irrigation systems;
- the extension of existing support schemes for sustainable irrigation systems;
- support for all energy efficiency investments;
- calling on market players to increase the use of sustainable packaging materials;and
- signalling the increased intervention by the competition authorities.
As a result, the GVH has already taken action against importers of cheese, yoghurt, vegetable drink, and frozen vegetables. This action is not surprising, given that the report revealed excessive profits embedded in the prices.
II. Accelerated sector inquiry into the booking service industry
During the holiday season, the GVH closely monitored pricing practices in the accommodation and booking service industry. Following consumer complaints and intense media attention, the GVH has initiated an accelerated sector inquiry into the online accommodation booking and service market in Hungary.
As previously reported, accelerated sector inquiries are a commonly used tool by the GVH, which promises quick findings and enables swift action by the authority, if necessary. The GVH conducts accelerated sector inquiries by requesting information from companies and taking their responses into account.
Experience shows that findings from sector inquiries are worth taking seriously. The last such sector inquiry into the hotel booking market was concluded in 2016 and resulted in the initiation of proceedings against several market players.
III. Summary
Since sector inquiries and accelerated sector inquiries have led to actions against market players in the past, it will be essential monitoring the outcome of the GVH’s latest inquiry into the online accommodation booking and service market. This is especially important considering the authority’s primary objective of maintaining consumer welfare through significant interventions in market practices.
We will continue to report on the latest developments affecting market participants.
For more information, please contact, Gábor Kutai, Marcell Fekete or Dániel Arányi.
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