The GVH's powers will be extended, here are the changes that will take effect from 2024
Budapest, 1 January 2024 - Following the progress made in 2023, the legislator has entrusted the Hungarian Competition Authority (GVH) with new tasks: the GVH will be responsible for the liaison function under the Foreign Subsidies Regulation, the so-called DSA Regulation on digital services will become mandatory from February, and from March the enforcement powers of the national competition authority will be extended: it will be able to take action to shut down harmful websites during its proceedings. In addition, the GVH is expected to be given several new tasks in 2024, including the regulation of gatekeepers and the online accommodation booking market, according to a draft law submitted to Parliament in mid-December.
The competences of the Competition Authority have been extended, and from 1 January 2024 the national competition authority will be the authority responsible for liaising with the European Commission under Regulation (EU) 2022/2560 of the European Parliament and of the Council on foreign aid. The GVH can open targeted investigations into foreign state aid that distorts the EU market, at the request of the European Commission.
More effective handling of complaints from consumers is facilitated by technical and minor substantive amendments to the complaints handling rules in the light of the provisions of Directive 2019/1937/EC of the European Parliament and of the Council on the protection of persons who report infringements of EU law. The amendment aimed at ensuring compliance with the rules of the Directive, as well as the amendment adopted by the Law amending certain laws related to strengthening the competitiveness of domestic economic operators and increasing the efficiency of public administration, will help consumers who have a dispute with the GVH to deal with their cases more efficiently.
GVH may shut down websites and starts applying the DSA Regulation
An amendment to Act XLVII of 2008 on the Prohibition of Unfair Commercial Practices against Consumers will extend the powers of the GVH from 1 March 2024, allowing the GVH Competition Council to order the inaccessibility of electronic data (e.g. websites) where this is necessary to prevent the risk of serious harm to consumers in view of the extensive consumer exposure. The National Media and Infocommunications Authority (NMHH) organises and supervises the implementation of the deactivation under the Electronic Communications Act.
On 17 February 2024, the domestic regulation facilitating the entry into force of Regulation (EU) 2022/2065 of the European Parliament and of the Council on the single market for digital services and amending Directive 2000/31/EC (the DSA Regulation) will enter into force, covering undertakings providing internet intermediary services established in Hungary or directed to Hungary.
The DSA Regulation lays down obligations for online intermediaries and platforms, such as marketplaces, social networks, content sharing platforms, app stores, and online travel and accommodation platforms. The primary objective of this Regulation is to prevent illegal and harmful online activities and the deliberate dissemination of false information. It ensures the safety of users, protects fundamental rights and creates a fair and open online platform environment.
The FCA works closely with the DSA Enforcement Authority (NMHH) on competition issues in the digital services market and on user-related issues in the digital services market to ensure consistent enforcement and promote uniform application of the law and to protect users' rights.
The GVH's recommendations in its expedited sector inquiry report will also be used as a basis for the legislative amendment of the online accommodation booking market
The online world is also affected by the proposal for a law on action in favour of Hungarian consumers and businesses, T/6547. The bill would also extend the powers of the Hungarian Competition Authority by amending the Act on Electronic Commerce Services and would set stricter national rules on the obligations of gatekeepers in the digital sector compared to the Regulation (EU) 2022/1925 on competitive and fair markets in the digital sector and amending Directives (EU) 2019/1937 and (EU) 2020/1828 (DMA Regulation), customer service and complaint handling mechanism in Hungary, with in-person or telephone and electronic access, strict payment deadlines, independent legal advice obligation).
Several points in the bill submitted to the Parliament represent the practical implementation of the National Competition Authority's fast-track sector inquiry launched at the end of August. The GVH has proposed several points of intervention to the legislator to protect Hungarian bookers and accommodation providers. In an interview published in the 28 December 2023 issue of Magyar Nemzet, Csaba Balázs Rigó, President of the GVH, said in this context: 'We must ensure that no company can put either Hungarian holidaymakers or the Hungarian businesses offering them accommodation in a vulnerable position.'
Automatic translation of the press release of the GVH.
