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T H E P R I M E R U S P A R A D I G M | C e l e b r a t i n g 2 5 y e a r s w i t h t h e w o r l d ' s f i n e s t l a w f i r m s
Material Changes in Hungarian Competition Law
in the Light of EU Antitrust Damages Directive
In order to implement the European
Union (EU) Antitrust Damages Directive
(2014/104/EU) into Hungarian law in due
course, the Hungarian Parliament adopted
a major amendment to the Competition
and Antitrust Act No. LVII of 1996 by
Act No. CLXI of 2016 (the "Amendment
Act"). The change came into effect on
January 15, 2017. This implementation is
likely to result in an easier way to succeed
in private antitrust litigations. However,
the existing failures of the Hungarian civil
law litigation will not be remedied. On
the other hand, business associations are
not really encouraged to introduce legal
actions in antitrust matters. In addition,
the new private enforcement rules will
probably contribute to a legal environment
that may, step by step, enhance private
enforcement of competition law in
Hungary.
Historic Background
Previously, claiming damages for a
competition law infringement was
feasible under the general civil law rules
on indemnification and a few special
supplementary provisions. However, the
Amendment Act introduced detailed
rules for damage claims arising out of
competition law infringement and the
enforcement thereof. These new rules
are incorporated into a new chapter of
the Competition Act and several other
new solutions are admitted to Hungarian
law aiming at the private enforcement of
competition law.
Liability and Compensation
Compensation may be claimed for:
·
cartels and other horizontal or
vertical restraints (Chapter IV of the
Competition Act and Article 101 of
the Treaty on the Functioning of the
European Union); and
·
abuse of a dominant position (Chapter
V of the act and Article 102 of the
treaty).
In such cases, the Civil Code and the
Code of Civil Proceedings apply, with the
exception of cases in which the special
rules included in the new chapter of the
Competition Act apply.
Joint and Several Liability
Multiple infringers are jointly and
severally liable for the damages caused.
The principle of joint and several liability
was already a well-known principle of
Hungarian civil law even before, but
now the Competition Act also accepts
this general principle in the context
of competition law, which results in
exceptions from joint and several liability
for small and medium sized enterprises
and leniency applicants to whom
immunity is granted. These business
players' joint and several liability exists
only for the losses of their direct or
indirect buyers and suppliers and are
liable for the losses of further parties only
if the losses cannot be enforced against
the other infringers.
Full Compensation
Aggrieved parties are entitled to full
compensation for their losses. Full
compensation is the general principle of
both the EU Antitrust Damages Directive
and Hungarian civil law and, as such, the
directive made no significant changes in
this respect. The major difference between
the directive and Hungarian civil law is
that the Hungarian Civil Code accepts
the concept authorizing the courts, in
exceptional circumstances, to award
compensation for damages in an amount
less than the loss actually suffered. This
rule is not undertaken by the Competition
Act and will therefore not apply in cases
of liability based on competition law
infringements. Moreover, liability for such
damages cannot be excluded or limited by
a contractual provision.
Amount of Loss
As a general rule, the burden of proof on
the damage caused by the infringement
Europe, Middle East & Africa ­ Hungar y
Zsolt Füsthy is a specialist in environmental law
and European Union law. He also practices in the
areas of mergers and acquisitions, corporate law,
international banking law and securities matters,
labor and employment, antitrust/competition law,
contract law and real estate law.
Füsthy & Mányai Law Office
Lajos u. 74-76
Budapest, Hungary H-1036
+36 1 454 1766 Phone
zfusthy@fusthylawoffice.hu
fusthylawoffice.hu
Zsolt Füsthy