Hungary: Topical issues in competition law enforcement

This article examines recent developments and topical matters in Hungarian competition law and policy, and its enforcement practice. Against a short historical and legal background the article discusses the current state of competition law enforcement, which has developed on the basis of a particular institutional model integrating certain consumer protection and the competition law enforcement powers. The current enforcement reveals a mixed picture of dominant reliance on consumer protection enforcement powers in, for example, digital markets and a restrained competition law enforcement due to various legislative developments in Hungary. The article argues that the Hungarian competition law and policy grew over the past two decades into a modern and solid competition law regime featuring a special institutional design housing both competition law and certain consumer law enforcement powers. Even though such an institutional setting has provided a fertile ground for the GVH to analyse market problems in a broader perspective and to explore and implement a broad range of enforcement tools and innovative enforcement mechanisms, over the years state intervention in markets grew to be unproportionate compared to the market failures. The article suggests a rebalancing of enforcement efforts and practices in order to better facilitate how future market structures could develop in Hungary and outside.