GVH reacts to inquiries about the new draft law giving them enormous powers
As Portfolio has already reported, the Economic Competition Authority (GVH) could be given significant new powers to "fight unfair market practices" and "restrictions of competition" under a new draft law. It would introduce a category of so-called "companies of essential importance" in major market areas, and would give the competition authority powers in certain situations, such as to require the owners of the company concerned to sell all or part of their shareholding in the company or to call a board meeting.
According to the GVH's reaction to our article, the background to this is that some market players may become dominant and cause further distortions of competition, the effects of which the authority will thus seek to prevent and counteract.
According to the response, the new powers are designed to promote fair economic competition and protect consumers' rights. To this end, the GVH will be able to take measures to prevent anti-competitive practices by companies of essential importance.
The wording of the specific legislation is almost entirely a transposition into Hungarian law of the relevant section 19a of the German Competition Act, the GWB, they wrote in their letter.
They argue that, following the German example, the GVH will be given similar powers in Hungary to take more effective action against anti-competitive behaviour. They believe that this is a proven solution in the European Union and hope that it will also help to create fairer competition in Hungary.
With regard to the restriction of owners' rights, they point out that the case law of the European Court of Justice allows for this, as they indicate that in such cases, decisions can be taken in the public interest.
"The amendments contained in the bill - which the GVH has of course received in advance from the legislator - if adopted by the Parliament, may contribute to the effective enforcement of the law, the efficient performance of the tasks of the Competition Authority and ultimately to the protection of fair competition and Hungarian consumers", they wrote.
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