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 threshold for mergers requiring notification was changed in 2023. A prior notification will be compulsory if the total net sales of all the undertakings involved in the concentration exceeds 20 billion forints (approximately EUR 50 million) and the net sales of each of at least two of the undertakings concerned during the previous financial year exceeded 1.5 billion forints (approximately EUR  …

Thresholds

Control of mergers in Hungary is carried out pursuant to Chapter VI of the Competition Act. The system of control is similar to that under EU law, i.e. a prior notification requirement for undertakings meeting certain defined thresholds. Amendments in 2013 and late 2016 have brought significant changes in merger control with the aim of streamlining procedures and reducing red tape.

Context

Pursuant to the terms of the Competition Act, a concentration exists where two previously independent undertakings merge or one undertaking or a part thereof is integrated with another. Alternatively, a concentration also exists where one or more undertakings jointly acquire direct or indirect control of another undertaking in whole or in part (Section 23).

  Direct control is defined as having ownership interests that entitle a party to exercise the majority voting rights, appoint a majority of the executive officials, or that give it, by contract or in fact, a decisive influence on decision-making. On the other hand, indirect control is said to exist where an undertaking exercises control over one undertaking by virtue of its control over another. Winding up and dissolution activities are expressly excluded from the definition of a concentration.

  The creation of a joint venture which is able to perform on a lasting basis all the functions of an independent undertaking constitutes a concentration.

Concept of concentration

The threshold for mergers requiring notification was changed in 2023. A prior notification will be compulsory if the total net sales of all the undertakings involved in the concentration exceeds 20 billion forints (approximately EUR 50 million) and the net sales of each of at least two of the undertakings concerned during the previous financial year exceeded 1.5 billion forints (approximately EUR 3.75 million).

In addition, the 2023 reform specifies that if the above thresholds are not met, notification of mergers exceeding a combined threshold of HUF 5 billion (approximately EUR 12.5 million) would be voluntary and no longer mandatory. 

Since the 2013 Amendments, only intragroup sales are expressly excluded from the statutory definition of turnover (both intragroup and intergroup sales were excluded previously). In addition, since the 2016 Amendments, only the turnover generated in Hungary may be taken into account for the calculation of the thresholds.

The test for approval of a concentration is whether a concentration creates or strengthens a dominant position that hinders competition on the relevant market. In evaluating the effect of the concentration, the Act directs the HCA to consider both the competitive advantages and disadvantages presented by the operation. Aspects that should be examined include the structure of the relevant market, ease of entry into the market and the effect of the concentration on competition in the market. In addition, legislation directs the HCA to consider the market position of the undertakings concerned and the effect of the concentration on suppliers and consumers (Section 30).

Global Competition Law

382. Thresholds

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Les notions juridiques connexes

382. Thresholds

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise