Hungarian Competition Authority

The Gazdasági Versenyhivatal (the Hungarian Competition Authority, GVH) launches a market analysis in order to explore the specific market developments relating to the application of digital comparison tools (websites and mobile-applications) and their effects on the decision making of consumers.

In its mid-term digital consumer protection strategy that was published last year, the GVH stated that it wants to become more familiar with the impact that digital comparison tools (which are ever-increasing and becoming more and more popular) have on consumer decision making.

The use of comparison tools can contribute to more informed consumer decision making and transparency, thereby also enhancing competition in the market. However, it is important that consumers are given appropriate information when using these tools, for instance:

• true information relating to the compared prices and the characteristics of the products;

• the criteria that are taken into account when comparisons are made and classifications are allocated;

• how their data are used as part of the business models of undertakings; and

• who the operators of the concerned digital comparison tools are.

In course of its market analysis the GVH will assess, in addition to assessing consumer expectations, habits and experiences in relation to the use of digital comparison tools, the following:

• the extent to which the operators of these tools are aware of the legal requirements concerning fair commercial practices towards consumers and the degree to which they comply with these requirements;

• how and why these tools have changed in both their content and appearance;

• what business models are behind them; and

• the types of communication activities carried out by their operators.

During its analysis, the GVH will focus on those sectors where consumers may have high search costs, where such tools are widely applied by consumers, where there are few competing tools on the market, and where the comparison services are accompanied by intensive communication. The GVH intends to primarily examine the websites and related applications that are accessible on the markets of retail trade, accommodation reservation and travel services, as well as financial and insurance services.

In the framework of the market analysis, the GVH will examine and evaluate the operation of the examined market and the development of market trends and market processes as well as their effects on competition and business partners, with special regard to consumers. To achieve this goal the GVH will primarily make use of publicly available market information and the voluntary consultations and responses to requests it receives from concerned market participants. The GVH will summarise the results, facts and findings of the market analysis in a report that will be published on its website.

In the last few days, the British Competition Authority (CMA) confirmed that it had accepted the commitments of six online hotel booking sites, according to which the sites undertook to refrain from engaging in certain commercial practices. In Hungary, the Hungarian Competition Authority (Gazdasági Versenyhivatal – GVH) currently has an ongoing competition supervision proceeding against the operator of the online hotel booking site, Booking.com B.V.

The Hungarian Competition Authority (Gazdasági Versenyhivatal, GVH) established that MediaMarkt’s acquisition of control over Tesco’s consumer electronics retail sector would not harmfully affect competition.

After the concentration Media Markt Retail Cooperation Kereskedelmi Kft. will operate as an independent undertaking, specialising in the sale of consumer electronic goods (so called “shop-in-shop”) within the sales area of the stores of Tesco Global Zrt in 9 locations (Budapest, Veszprém, Sopron, Baja, Esztergom, Szekszárd, Dunaújváros, Kaposvár, and Tatabánya).

The GVH examined the potential competitive effects of the concentration in the consumer electronics retail sector on the national market and also on the involved cities; in order to do so the GVH also acquired information from the other market participants in the Hungarian market. After undertaking its analysis the GVH concluded that the market concentration after the acquisition of control would not be significant enough to distort competition either nationally or locally. In its decision the GVH also considered the possible benefits of the concentration, in particular the benefits for consumers (e.g. greater choice of products, improvement of consumer services).

Case number: VJ/34/2018

25 January 2019, Budapest

Hungarian Competition Authority

In line with its Digital Consumer Protection Strategy the Hungarian Competition Authority aims to respond effectively to the challenges presented by new markets.  The GVH has initiated an investigation due to the latest Black Friday sales promotion activity on the eMAG webshop. It is alleged that this conduct infringed the prohibition of unfair commercial practices against consumers.

The Hungarian Competition Authority (Gazdasági Versenyhivatal: hereinafter GVH) has initiated a competition supervision proceeding against the operator of the webshop, namely, S.C. Dante International S.A. It is alleged that the undertaking in question failed to adequately set and monitor the conditions, prices and discounts of its Black Friday sales promotion in november 2018. The GVH also suspects that the undertaking failed to stock the appropriate amount of goods necessary to meet the expected demand during the sales period. It is alleged that during the sales period the undertaking infringed the prohibition of unfair commercial practices against consumers due to its failure to meet the requirements of professional diligence.

The Hungarian Competition Authority (Gazdasági Versenyhivatal, GVH) imposed fines amounting to a total of 105 million forints (0.33 million EUR)  on four water welling companies for entering into an agreement aimed at restricting competition in public procurement procedures.

The GVH conducted competition supervision proceedings against Vikuv Vízkutató és Fúró Zrt., Aquazit Szolgáltató Kft., Drillingwater Kft. és a Geo-Sivo Építőipari, and Környezetvédelmi Tervező és Kivitelező Kft. The GVH established that the four companies had divided among themselves public procurement tenders relating to well drilling, restoration and utilisation in certain cities. In order to achieve this goal, the undertakings entered into an anti-competitive agreement with one another; furthermore, they co-ordinated their bids in advance and agreed on the winner of each tender.

Three of the concerned undertaking, namely Vikuv, Aquazit and Drillingwater, did not deny that the agreement had been concluded; however, they claimed that in practice Aquazit and Drillingwater belonged to the Vikuv group and that therefore their co-operation could not have infringed the prohibition against the restriction of competition. The GVH, after considering all of the arguments and evidence put forward by the companies, did not accept their standpoint, as the undertakings could not prove that Vikuv legally exercised full and permanent control over the two other undertaking. In its decision, the GVH’s therefore qualified the parties to the agreement as independent, colluding undertakings.

Furthermore, it was established that in relation to the procurement tender of Kengyel village, Vikuv, in addition to submitting its own bid, also prepared the bid of Geo-Sivo Kft, which it set at a higher level in order to ensure that the former would win the tender. Additionally, the third bidder, Aquazit, also submitted a higher, so-called supporting bid, in order to guarantee that Vikuv would win the bid.

Bid rigging is a very serious offence and in certain cases it may have criminal consequences. The GVH imposed the maximum fine possible under the provisions of the Hungarian Competition Act on all four undertakings.

Case number: Vj/111/2015.

19 December 2018, Budapest

Hungarian Competition Authority

Nóra Váczi, a member of the Competition Council of the GVH, has been recognised as one of the ‘40 in their 40s Notable Women Competition Professionals in Europe, the Americas and Africa’ in the enforcement category by the W@Competition. In order to be awarded this title, applicants from Europe, the Americas and Africa could apply to a number of categories, such as enforcement, judiciary and policy, in-house, private practice, economics and academia by submitting their professional curriculum vitae. A jury composed of prominent competition law professionals decided which applicants were deemed worthy of being award the title of  ‘40 in their 40s Notable Women Competition Professionals in Europe, the Americas and Africa’.

It is a great honour that Nóra was selected to be among this list of 40 outstanding women, which is comprised of well accomplished women in the field of competition law, for instance, as heads of competition authorities (including, among others, the presidents of the French and Portugal competition authorities), judges and other competition law experts.

The W@Competition organisation promotes the more active participation of women in competition law. The organisation operates an online database of women working in competition law, organises events with women presenters, maintains a competition law blog and aims to make it easier for its members to interact with each other.

We would like to congratulate Nóra on this achievement, and for thereby promoting the prestige of the GVH. We wish her all the best for her work here at the Authority!

Pursuant to Article 43/J (1) of the Hungarian Competition Act, the form for the notification of a concentration published on the website of the Hungarian Competition Authority (“Gazdasági Versenyhivatal” hereinafter: GV) may be submitted electronically.

A notification of a concentration can be filed electronically on the customised platform (Személyreszabott Ügyintézési Felület, SZÜF) of the governmental website using the electronic iForm application filing programme. In case of electronic submission the notification form shall be attached to the iForm application form.

#GVH#Compliance#Influencer

The Hungarian Competition Authority published its ’#GVH#Compliance#Influencer’ guidance document which aims to provide assistance for users publishing online content.