The Hungarian Competition Authority authorised the sale of VidaNet’s network in Budapest’s VIII district

The Hungarian Competition Authority (GVH) authorised Magyar Telekom Plc.’s acquisition of VidaNet Kábeltelevíziós Plc.’s (VidaNet) established network in Budapest’s VIII district and its gaining of control over the clientele connected to the network.

The established network in district VIII which falls under the transaction is comprised of the cable telecommunication network and its associated technical instruments and subscribers.

While investigating the horizontal effects of the concentration, the GVH investigated the actual and potential presence of the above-mentioned groups of undertakings in Budapest’s VIII district. In its decision, the GVH concluded that the authorisation of the acquisition would only result in a minimal increase in the concentration in relation to cable telephony, internet and program broadcasting, and that it would not reach a level that would raise competition concerns, having regard to the market shares of the other companies in the market. Additionally, competition concerns could be unequivocally ruled out in the mobile internet services.

The GVH did not identify any other detrimental vertical or portfolio effects, and there was also no sign of any conglomerate effect.

Taking into account of all the above-mentioned factors, the GVH authorised the transaction.

As a result of its delayed notification, the GVH fined Telekom a total sum of 100,000 HUF (cca. 320 EUR). When calculating the amount of the fine the GVH took into account the fact that although the acquirer was 2 days late, it had voluntarily filed the claim, and that the short duration of the delay and the lack of competition concerns excluded the possibility that the acquirer may have wanted to keep the transaction a secret. Consequently, the GVH calculated the daily amount of the fine as a quarter of the maximal fine of 200,000 HUF which can be imposed on a daily basis on an undertaking.

Case number: Vj-52/2013

Budapest, 22 January 2015

Hungarian Competition Authority

Further information:
Andrea BASA
Spokesperson
Mail: 1054 Budapest, V. ker. Alkotmány u. 5.
Postal address: 1391 Budapest, 62. POB 211
Tel: (+36-1) 472-8902
Email: 
http://www.gvh.hu

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Fines imposed on cartel in public procurement

According to the GVH’s (Hungarian Competition Authority) decision OTYS ÚTTECHNIKA Kft. (OTYS), ÚT-GARANTOR Kft. (ÚT-GARANTOR) and Kristály-Vár Építési, Kereskedelmi és Szolgáltató Kft. (Kristály-Vár) had agreed upon the winner of the public procurement published by the council of Nagylóc, and OTYS and ÚT-GARANTOR had also agreed on the public procurement of the council of Szécsényfelfalu before entering their bids. The GVH imposed a total fine of 43 560 000 HUF (approx. 137 000 EUR) on the three undertakings.

The council of Nagylóc published a public procurement (“Urban development related to water damages”) on 25 June 2012 and the council of Szécsényfelfalu published a public procurement (“Urban reconstruction in flood-hit settlements”) on 23 April 2012. The tenders were mainly for road construction and road reconstruction operations.

The GVH found that in the case of the tender of Nagylóc:

  • OTYS prepared the offer of ÚT-GARANTOR and Kristály-Vár

  • ÚT-GARANTOR and Kristály-Vár entered with the offer prepared by OTYS

  • ÚT-GARANTOR and Kristály-Vár, in accordance with OTYS, refrained from entering a real, competitive offer

In the case of the Szécsényfelfalu tender the GVH concluded that OTYS and ÚT-GARANTOR had made contact before entering their bids to discuss documents that were needed for the general contract offer and that OTYS had entered a cover-bid in order to favour ÚT-GARANTOR. Consequently, the two undertakings were engaged in collusive market behaviour.

The undertakings under investigation violated the prohibition of restrictive agreements for which the GVH imposed the following fines:

ÚT-GARANTOR           18.650.000 HUF (approx. 59 000 EUR)

OTYS                              18.650.000 HUF (approx. 59 500 EUR)

Kristály-Vár                    6.260.000 HUF (approx. 20 000 EUR)

The GVH based the calculation of each fine on – as relevant turnover – three times the amount of the winning bid and considered aggravating and mitigating circumstances.

The GVH took into account, among other things, the fact that market sharing in a public procurement procedure is one of the most serious competition law infringements as it not only compromises the interest of the publisher of a tender but also severely damages the public interest. Additionally, as the implemented market-sharing arrangement was successful, the market impact attributable to the practice of the undertakings under investigation had actually occurred.

Case number: Vj-48/2013

Budapest, 13 January 2015

Hungarian Competition Authority

Further information:
Andrea BASA
Spokesperson
Mail: 1054 Budapest, V. ker. Alkotmány u. 5.
Postal address: 1391 Budapest, 62. POB 211
Tel: (+36-1) 472-8902
Email: 
http://www.gvh.hu

Printable version in PDF
Proceeding initiated against Monsanto Hungária Kft.

The Hungarian Competition Authority (GVH) initiated a competition supervision proceeding against Monsanto Hungária Kft. for an alleged violation of the prohibitions of misleading advertising and misleading of business partners.

The GVH launched its investigation on 19 December due to the suspicion that the undertaking’s behaviour during the promotion of its DEKALB oilseed in 2014, in which it provided unclear, incomprehensible, ambiguous information about its winter oilseed trial, was presumably capable of influencing its business partners’ behaviour.

The GVH suspects that the undertaking under investigation has presumably violated, by the above described conduct which was carried out until 30 June 2014, the provisions of the Act on Business Advertising Activity. Due to legislative changes in which the provisions relating to misleading advertising and misleading business partners were incorporated into the Hungarian Competition Act, the latter Act was applied to the undertaking’s conduct which was carried out after 1 July 2014.

The completion of the procedure is necessary in order to protect the public interest, having regard to the fact that if the undertaking’s conduct is found to be unlawful it will have affected customers throughout the whole territory of Hungary.

The initiation of the competition supervision proceeding does not mean that the undertaking in question has actually committed an infringement. The proceeding seeks to clarify the facts and to prove that the presumed infringement has been committed. According to the Act these proceedings must be closed within 6 months, however, this time limit can be extended two times by a further 6 months, depending on the complexity of the case.

Case number: Vj-123/2014.

Budapest, 10 January 2015

Hungarian Competition Authority

Further information:
Andrea BASA
Spokesperson
Mail: 1054 Budapest, V. ker. Alkotmány u. 5.
Postal address: 1391 Budapest, 62. POB 211
Tel: (+36-1) 472-8902
Email: 
http://www.gvh.hu

Printable version in PDF


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