Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

The provisions of the Act prohibiting anticompetitive agreements (Chapter IV) largely parallel the equivalent EU Law provisions. Section 11 prohibits agreements or concerted practices that actually or potentially prevent, restrict or distort competition. The Section includes a non-exhaustive list of prohibited agreements and practices in particular price fixing, limiting production, allocating mar …

The prohibition

The provisions of the Act prohibiting anticompetitive agreements (Chapter IV) largely parallel the equivalent EU Law provisions. Section 11 prohibits agreements or concerted practices that actually or potentially prevent, restrict or distort competition. The Section includes a non-exhaustive list of prohibited agreements and practices in particular price fixing, limiting production, allocating markets, hindering market entry and making the conclusion of an agreement subject to unrelated conditions (tying).

  Pursuant to Section 13, agreements of minor importance, determined by reference to market share, are not prohibited. Amendments to the Act inserted in October 2017 align Hungarian law with Union law by establishing a special regime for vertical agreements, which were previously not covered by the de minimis rule. As was alrealdy the case, agreements between competitors whose joint market share does not exceed 10% of the relevant market benefit from the de minimis rule provided that their object is not to fix prices or share markets. From 1 January 2018, vertical agreements also escape the prohibition where each of the parties' market share stays below 15%. However, the de minimis rule may not apply where competition is significantly prevented, restricted or distorted by the cumulative effect of agreements between undertakings.

The criteria for granting an individual exemption, pursuant to Section 17, are essentially the same as those found in EU law. Thus, an individual exemption is available, upon application, for agreements that contribute to improved production or distribution, technical or economic progress, improved competition or the protection of the environment. However, the agreement must allow consumers a fair share of the benefit, not exceed what is necessary to achieve its goal and not create the potential for excluding competition in respect of a substantial part of the products concerned. The burden of proof of the individual exemption rests on the person claiming the benefit of exemption (section 20).

Under the Competition Act, the government, rather than the Competition Authority, is responsible for adopting regulations regarding block exemptions. However, in exercising this function, the government has to take into account the criteria laid down in Section 17. Moreover, if, as a result of the cumulative effect block exempted and other similar agreements have on the relevant market, the provisions of Section 17 are no longer satisfied, the block exemption no longer applies.

Pursuant to Section 96 of the Competition Act, the government updated the block exemption regulations concerning specialization agreements (Regulation No 53/2002) and research and development agreements (Regulation No 54/2002) in the spring of 2002. Furthermore, a general vertical restraints block exemption regulation has been adopted (Regulation 55/2002), replacing the existing block exemption regulations for exclusive distribution and purchase agreements and franchise agreements. Finally, that regulation was also replaced by Regulation No 205/2011 which came into force on 22 October 2011. This regulation aims to bring consistency with the EU Regulation No 330/2010. Generally, the Hungarian competition authorities clearly follow developments at EU level closely. Besides these new regulations, block exemptions also exist in the fields of motor vehicle distribution (Regulation No 19/2004), insurance (Regulation No 18/2004), technology transfer (Regulation No 86/1999) and agricultural products (Section 18/A of Act No CXXVIII of 2012 incorporated in the Competition Act by an amendment of 9 June 2015 which provides that the exemption is not available where EU competition rules apply to the case).

Global Competition Law

366. The prohibition

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Les notions juridiques connexes

366. The prohibition

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Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise