Rising Stakes: Enhanced Vigilance By The Hungarian Competition Authority

• Law Firm: Bird & Bird
• Subject Matter: Antitrust/Competition Law, Food, Drugs, Healthcare, Life Sciences, Antitrust, EU Competition , Food and Drugs Law
• Author: Mr D'niel Aranyi and G'bor Kutai
• Published date: 07 August 2023

The Hungarian Competition Authority ("GVH") in the last couple of months has taken regulatory measures in various product markets explored in our latest articles regarding its HoReCa sector inquiry, investigation in the food sector and price monitoring database. To this end, the GVH is not only consulting with market players, but also making recommendations and acting with increased urgency to strengthen competition. Therefore, keeping up with the latest actions of the GVH may also be of importance for market players.

Developments in the dairy market

As we reported in our last article, the GVH conducted a sector inquiry and issued a draft report on its observations and recommendations on the dairy market.

In its draft report, the GVH supports the development and operation of an online price monitoring system and the promotion of sustainable packaging. The authority also sets out recommendations on plant-based drinks and highlights the importance of enhanced regulatory action.

In cooperation with the Ministry of Agriculture and the Milk Interprofessional Organisation and Product Board, the GVH is currently conducting a review of the price formula for raw milk base price.

Increased focus on the non-perishable food market

The GVH also conducted a sector inquiry into the non-perishable food market and recently published a draft report on its findings. The draft report is out for public consultation, and market players are invited to comment until 8 June 2023.

In accordance with the findings of the GVH, the non-perishable food market is particularly heterogeneous in terms of products. With regard to the producers, the pricing mechanisms are different than for fresh food, while the key importance for consumers lies in the popularity and good storability of non-perishable food.

In its recommendations, the GVH:

1. emphasises the...