Hungary/EU, 2005

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Governed by: EU law: Articles 81 and 82 of the Treaty Establishing the European Communities (Rome Treaty), Regulation 1/2003 of 16 December 2002 [1] and the Hungarian Competition Act: Act LVII of 1996 on the Prohibition of Unfair and Restrictive Market Practices as amended July 2004, effective November 1, 2005. [2][3]


Category Subcategory Score Comment
Scope Extraterritoriality 1 Article 1(1) says that the Act applies to practices abroad that have effects in Hungary.
Remedies Fines 1 Article 78 has guidelines for the imposition of fines.
Prison Sentences 1 The criminal code in Hungary was modified to include imprisonment as a punishment for certain anti-competitive practices[4]
Divestitures 1 Article 31 allows divestiture
Private Enforcement 3rd Party Initiation 1 Article 43/H(1) allows 3rd parties to complain and initiate proceedings
Remedies Available to 3rd Parties 1 Article 86(2)(e) allows interested parties to demand damages
3rd Party Rights in Proceedings 1 Article 43/H(5) allows complaining 3rd parties access to procedural documents
Merger Notification Voluntary 0
Mandatory 3 Article 24 requires notification of mergers worth over a certain monetary threshold.
Pre-merger 0
Post-merger 1 Article 28(2) says that the notification must offer within 30 days of the date of either the invitation to tender to the conclusion of the contract.
Merger Assessment Dominance 1 Article 30(2) says that a merger cannot be refused if it does not create or strengthen a dominant position.
Restriction of Competition 1 Article 30(1)(a) lists the effects on competition as one of the main factors in merger assessment.
Public Interest (Pro D) 1 Article 30(1)(c) considers the effect on suppliers, intermediate consumers, and ultimate consumers
Public Interest (Pro Authority) 1 Article 30(1)(c) considers the effect on suppliers, intermediate consumers, and ultimate consumers
Other 1 Article 30(1)(b) considers internal and external competitiveness
Efficiency 0
Dominance Limits Access 1 Article 82(b) of the Rome Treaty prohibits limiting access.
Abusive Acts 1 Article 82 of the Rome Treaty prohibits abuse of dominant position.
Price Setting 1 Article 82(a) of the Rome Treaty prohibits price setting.
Discriminatory Pricing 1 Article 82(c) of the Rome Treaty prohibits discriminatory conditions.
Resale Price Maintenance 1 Article 82(a) of the Rome Treaty prohibits resale price maintenance.
Obstacles to Entry 1 Article 82 of the Rome Treaty prohibits anti-competitive pricing schemes.
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 Article 81(1)(a) of the Rome Treaty prohibits price fixing.
Tying 1 Article 81(1)(e) of the Rome Treaty prohibits tying.
Market Division 1 Article 81 of the Rome Treaty prohibits customer allocation clauses.
Output Restraint 1 Article 81(1)(b) of the Rome Treaty prohibits limiting production.
Market Sharing 1 Article 81(1)(c) of the Rome Treaty prohibits market sharing.
Eliminating Competitors 1 Article 81(1) of the Rome Treaty prohibits agreements that have the purpose or effect of eliminating competition.
Collusive Tendering/Bid-Rigging 1 Article 81 of the Rome Treaty prohibits bid-rigging.[5]
Supply Refusal 1 Article 81(1)(b) of the Rome Treaty prohibits supply refusal.
Efficiency Defense 1 Article 81(3) of the Rome Treaty allows an efficiency defense.

References

  1. Available at http://ec.europa.eu/comm/competition/antitrust/legislation/legislation.html
  2. Hungarian Competition Council website, http://www.gvh.ionlab.net/index.php?id=575&l=e
  3. Text of statute, http://www.gvh.hu/domain2/files/modules/module25/jogi/Act_LVII_of_1996.pdf
  4. http://www.freshfields.com/publications/pdfs/2005/complaw2005.pdf
  5. http://www.eujapan.com/europe/seminar_tokyo_mehta1_april08.pdf