From 1 August 2024, the maximum fine that can be imposed by the Hungarian Competition Authority equals 15% of the undertaking’s net turnover. According to the Authority’s statement, its primary objective is not to impose fines, however, the increase in the potential financial penalty is a strong deterrent. In any case, it can be observed that the Authority is becoming more and more stringent concerning fines: while in 2023 it imposed fines totalling HUF 2.2 billion, the total amount of fines imposed this year exceeded HUF 2 billion by August.
The specific amount of the fines is calculated by the Authority’s Competition Council within the discretionary framework provided by the Competition Act and the fine notices issued by the Authority, taking into account all the circumstances of the case. From 1 August 2024, the maximum fine equals 15% of the undertaking’s net turnover of the previous year. Until 31 August 2023, this amount was only 10% and on 1 September 2023, it increased to 13%.
The Authority offers a number of cooperation opportunities for undertakings and active cooperation during the competition supervision proceedings that can reduce the amount of the fine. In addition, the Authority also provides information material (in topics such as changes in consumer protection law, statements in connection with sustainability) to prevent infringing behaviour. According to the Authority, the goal is to protect consumers effectively and to actively support businesses that want to comply with competition rules.
By Rita Parkanyi, Partner, KCG Partner
