Law No. LXXXVI of 1990 on the Prohibition of Unfair Market
Practice
(of November 20, 1990) *
TABLE OF CONTENTS **
Articles
General Provisions ....................................................................................................... 1 to 3
Part I: Prohibition of Unfair Market Practice
Part II: Supervision of Corporate Alliances
Part III: Procedural and Organizational Provisions
Chapter VII: Procedure
Chapter I: Prohibition of Unfair Competition .................................................... 4 to 10
Chapter II: Prohibition of Consumer Deception............................................... 11 to 13
Chapter III: Prohibition of Agreements Restricting Economic Competition ... 14 to 19
Chapter IV: Prohibition of Abuse of Economic Superiority ............................ 20 to 22
Chapter V: Supervision of the Corporate Alliance of Enterprises.................... 23 to 27
Chapter VI: Assertion of Claims ...................................................................... 28 to 31
General Procedural Rules .......................................................................... 32 to 41
Rulings of the Competition Control Body................................................. 42 to 48
Court Proceedings ..................................................................................... 49 to 51
Chapter VIII: Office of Economic Competition............................................... 52 to 62
Final Provisions ....................................................................................................... 63 to 67
General Provisions
* Hungarian title: 1990. évi LXXXVI. törvény a tiszességtelen piaci magatartás tilalmáról.
Entry into force: January 1, 1991.
Source: Szabadalmi Közlöny Es Védjegyé 1991, No. II/5.
Note: Translation by the International Bureau of WIPO on the basis of the English translation
furnished by the Hungarian authorities. **
** Added by WIPO.
1. The effect of this Law shall extend—unless otherwise provided by a separate law—to the
economic activities of entrepreneurs on the territory of the Hungarian Republic.
2. For the purposes of this Law:
(a) “entrepreneurs” means legal entities, economic corporations without legal personality and
other corporations, and natural persons, engaging in economic activity;
(b) “economic activity” means the conduct as a business of a production or service activity
against remuneration with a view to making a profit and generating capital;
(c) “competitors” means entrepreneurs interested in economic competition;
(d) “consumers” means customers, buyers and users.
3.— (1) Entrepreneurs shall respect the freedom and fairness of economic competition.
(2) It is prohibited to engage in economic activity in a dishonest manner—particularly in a manner
that offends or jeopardizes the legitimate interests of rivals and consumers or is contrary to the
demands of business integrity.
Part I Prohibition of Unfair Market Practice
Chapter I Prohibition of Unfair Competition
4. It is prohibited to hurt or jeopardize the reputation or credibility of a competitor by making
or spreading false allegations, by presenting true facts in the wrong light or by any other conduct.
5.— (1) It is prohibited to obtain or use a business secret in a dishonest manner or to reveal it
to others or publish it without authorization.
(2) It shall also be regarded as obtaining a business secret in a dishonest manner if the
business secret has been obtained, without the consent of the authorized person, through the
collaboration of a person having relations of trust or business dealings with him.
(3) For the purposes of this Law:
(a) “business secret” means all facts, information, solutions or data relating to economic
activities in the continuing secrecy of which the authorized person has a legitimate interest;
(b) “confidential relations” means in particular, employment relations or other legal relations
entailing work and membership;
(c) “business dealings” means releasing information, conducting negotiations or making
offers prior to the conclusion of a contract, even if no contract is concluded as a result.
6. It is prohibited to make a dishonest appeal to others that is expressly intended to disrupt
economic relations with a third party or to hinder the establishment of such relations.
7. It is prohibited to manufacture or distribute goods and services (hereinafter referred to as
“goods”) without the consent of a competitor when the characteristic appearance, packaging or
designation—including the indication of provenance—or the name, designation or mark are used by
which the said competitor or his goods are typically recognized.
8. It is prohibited to withdraw or withhold goods prior to a planned price increase or for the
purpose of bringing about a price increase.
9. It is prohibited to make the supply or acceptance of goods contingent on the supply or
acceptance of other goods.
10. It is prohibited to violate the fairness of tenders, auctions or stock exchange business in
any way.
Chapter II Prohibition of Consumer Deception
11.— (1) It is prohibited to deceive consumers in order to increase the demand for goods.
(2) The following in particular constitute consumer deception:
(a) assertion of untrue facts or of true facts in a manner liable to deceive as to the essential
characteristics of goods—especially regarding their composition, use, effect on health and on the
environment, as well as their treatment, origin and place of origin, provenance or mode of
acquisition—or provision of other deceptive or inadequate information on the essential
characteristics of the goods;
(b) comparison of goods in a manner liable to deceive and publication of the comparison in
other advertising or information material;
(c) concealment of the fact that the goods do not conform to legal specifications, State
standards or the general requirements imposed in respect of goods, or that their utilization requires
the observance of conditions that differ substantially from what is customary;
(d) providing the goods with trademarks liable to deceive as to their utilization or any other
essential characteristics, origin, place of origin, provenance or mode of acquisition;
(e) advertising goods that are not available to consumers or are available in insufficient
quantity or variety, except where the consumers are informed of the situation in the case of
advertising to introduce new goods or to sell off stocks of goods that are difficult to sell.
12.— (1) Comparison of goods shall not normally be regarded as liable to deceive if the
conditions of unbiased and technically informed examination have been fulfilled, if the examination
is based on published comparative data and if the essential characteristics, prices and pricing criteria
of the goods compared have been published.
(2) Even in the case provided for in paragraph (1), a comparison of goods is liable to deceive
if it quotes the result of the examination out of context and in a tendentious and onesided manner.
13. The criterion for establishing whether a statement is liable to deceive shall be its accepted
meaning either in everyday life or in the relevant trade, as the case may be.
Chapter III Prohibition of Agreements Restricting Economic Competition
14.— (1) Coordinated conduct or, as the case may be, agreement between competitors
(hereinafter referred to as “agreement”) that could lead to the restriction or elimination of economic
competition is prohibited, except as provided in Articles 15 to 17, irrespective of whether or not the
agreement was concluded on the territory of the Hungarian Republic.
(2) This prohibition shall in particular apply to the fixing of prices of goods, the
apportionment of market shares or exclusion of certain consumer groups from obtaining or
marketing goods, the limitation of the choice of sources of supply or sales outlets, the restriction of
the supply of goods, the obstruction of technical development or of access to markets and the
placing of market participants at a disadvantage.
(3) It is prohibited to specify resale prices in a contract except as provided in
Articles 15 to 17—if this could lead to the restriction or elimination of economic competition.
15. An agreement is not prohibited:
(a) if it is intended to prevent abuse of economic superiority;
(b) if it is of minor significance.
16.— (1) An agreement is of minor significance if on the market concerned the contracting
parties’ overall share of the goods that form the subject matter of the agreement does not exceed 10
percent. This condition must be met for as long as the agreement is in force and in every calendar
year if it is in force for more than a year.
(2) The market concerned is the area affected by the consequences of the restriction or
elimination of competition. The market concerned shall be determined according to the goods that
form the subject matter of the agreement and the geographical area.
(3) Account shall be taken not only of goods that form the subject matter of the agreement,
but also of other goods that may reasonably be substituted for them.
(4) The geographical area is territory outside which:
(a) the consumer is either unable to procure the goods or only able to procure them under
considerably less favorable conditions;
(b) the seller of the goods is either unable to market the goods or only able to market them
under considerably less favorable conditions.
17.— (1) The agreement shall be released from prohibition under Article 14 if:
(a) the resulting restriction or elimination of economic competition does not go beyond the
extent necessary for the attainment of economically justified common goals;
(b) the resulting advantages outweigh the resulting disadvantages.
(2) For the purposes of the release of the agreement from the said prohibition, the following
in particular shall qualify as advantages:
(a) favorable structuring of prices;
(b) improved quality of the goods, or a lasting guarantee that the present high quality will be
maintained;
(c) improved implementation of the agreement (e.g., shorter delivery periods);
(d) shortened delivery route, more rationally structured purchase and sales organization,
improved supply of the goods concerned;
(e) furtherance of technical and technological development, improved environmental
protection or competitiveness on foreign markets.
(3) For the purposes of the release of the agreement from the said prohibition, it shall in
particular be considered a disadvantage if on the market concerned the contracting parties’ overall
share of the goods that form the subject matter of the agreement exceeds 30 percent during the
validity of the said agreement.
18.— (1) The parties planning to conclude an agreement may apply to the competition control
body (Article 52) for a decision declaring the planned agreement immune to prohibition by virtue of
Section 15 or exempted from prohibition by virtue of Article 17.
(2) Following the issue of the decision under paragraph (1), the agreement or, as the case may
be, the activity of the parties in connection therewith, may not be objected to by the competition
control body.
19. Proof that the agreement is immune to prohibition by virtue of Article 15 or exempted
from prohibition by virtue of Article 17 shall be adduced by the person who invokes the provision
concerned.
Chapter IV Prohibition of Abuse of Economic Superiority
20. It is prohibited to abuse economic superiority, particularly:
(a) in contractual relations—including the application of the general contract conditions—by
imposing unjustified, onesided advantages or forcing acceptance of disadvantageous conditions;
(b) by refusing to enter into the contract without justification;
(c) by influencing the economic decisions of the other party in order to gain unjustified
advantages, notably with a view to making him forgo the assertion of his legitimate claims under
the contract;
(d) by obstructing access to the market or technical development;
(e) by creating an unjustifiably adverse market situation for the competitor, or by influencing
his economic decisions in order to gain unjustified advantages.
21.— (1) Economic superiority is typically possessed by one
(a) whose goods cannot be procured elsewhere, or can only be procured on considerably less
favorable terms than is usual in relation to the trade and the goods concerned;
(b) who orders goods that cannot be marketed elsewhere or can only be marketed on
considerably less favorable terms than is usual in relation to the trade and the goods concerned;
(c) whose share of the goods on the market concerned (Article 16(2)), during the reference
period exceeds 30 percent.
(2) Those entrepreneurs also have economic superiority between whom there is no
competition on the market concerned during the reference period.
(3) A maximum of three entrepreneurs whose overall share on the market concerned during
the reference period exceeds 50 percent have economic superiority.
(4) In assessing economic superiority, the parties immune to prohibition by virtue of
Article 15 or exempted from prohibition by virtue of Article 17 who enter into an agreement shall
be taken into consideration jointly.
22. An unjustified and onesided advantage shall in particular be assumed where there is a
considerable difference in value between the service and the consideration provided for in the
contract. To establish such difference, the conditions under which the contract has been concluded,
the whole contents of the contract, including sales conditions, value considerations, characteristics
arising from the nature of the transaction, and the manner of defining the service and the
consideration, shall be examined.
Part II Supervision of Corporate Alliances
Chapter V Supervision of the Corporate Alliance of Enterprises
23.— (1) For the corporate alliance of enterprises (association, merger), preliminary
authorization shall be sought from the competition control body where:
(a) the participants’ overall share of the market concerned in the previous calendar year with
respect to any goods sold by them exceeds 30 percent;
(b) the joint income of the participants in the previous calendar year exceeded 10 billion
forints.
(2) The participants shall jointly file the application for authorization of the planned corporate
alliance.
(3) If the corporate alliance of enterprises is ordered by a resolution of the State
administration, the body that issues the resolution shall first consult the competition control body.
24.— (1) The competition control body may not—subject to the provisions of
paragraph (2)—authorize a corporate alliance that hampers the emergence, existence or
development of economic competition.
(2) Notwithstanding the provisions of paragraph (1), a corporate alliance may be authorized
where:
(a) the advantages of its effect on economic competition outweigh the disadvantages;
(b) it does not preclude economic competition in respect of a substantial amount of the goods
concerned;
(c) it promotes the penetration of foreign markets in a manner advantageous to the national
economy.
(3) Advantages and disadvantages shall be determined according to Articles 17(2) and (3).
25. The authorization issued for a corporate alliance shall extend to whatever restrictions of
competition are necessary for the implementation of the corporate alliance.
26.— (1) The rules applicable to corporate alliances shall operate even where, on the market
concerned in the previous calendar year, the joint share of the entrepreneur over whom control has
been gained and of the entrepreneur who has gained control exceeds 30 percent in respect of any
goods marketed by them.
(2) An entrepreneur has gained control when he:
(a) has acquired over 50 percent of the stock, business shares or voting rights to secure a
controlling interest in the property of the other entrepreneur;
(b) he has acquired a right to influence the decisions of the other entrepreneur or to conduct
his business affairs by virtue of a special agreement.
(3) Control shall be considered gained even where it is proved to have been acquired
otherwise by action on the part of the entrepreneurs.
27.— (1) Indirect participants shall also be taken into consideration in relation to the market
concerned when corporate alliances of entrepreneurs and the acquisition of control are examined.
(2) An indirect participant is one
(a) who is controlled by a direct participant under Article 26(2) or (3);
(b) who controls the direct participant referred to in paragraph (a);
(c) who is controlled by an indirect participant within the meaning of paragraph (b)—other
than the direct participant—referred to in paragraph (a);
(d) who controls an indirect participant within the meaning of paragraph (b), under
paragraph (a).
Part III Procedural and Organizational Provisions
Chapter VI Assertion of Claims
28. Any interested party may:
(a) institute court proceedings for infringement of the provisions contained in Chapter I;
(b) institute court proceedings or file a plea with the competition control body for
infringement of the provisions of Article 3 and Chapter II;
(c) file a plea with the competition control body for infringement of the provisions of
Chapters III to V.
29.— (1) The interested party may assert the following civil claims in particular at his
discretion in the action that he brings before the court:
(a) he may demand the acknowledgment of the violation of the law;
(b) he may demand the cessation of the violation of the law and the prohibition of any further
violations of the law on the part of the offender;
(c) he may demand satisfaction in a statement by the offender or in another appropriate
manner and, where necessary, appropriate publication of the statement or other measure by the
offender or at his expense;
(d) he may demand the elimination of the adverse situation, the restoration of the situation
prior to the violation of the law or the elimination of the illegal character of the goods manufactured
or marketed in violation of the law or—if that is not possible—their destruction, and the destruction
of the special means whereby they were manufactured;
(e) he may demand damages under the provisions on civil liability.
(2) If the competition control body discovers a case of unjustified refusal to enter into a
contract within the meaning of Article 20(b), the interested party may in his application to the court
request the making of a contract. The court may make the contract, drawing for its contents on
terms that are customary in the trade.
30.— (1) No proceedings may be started—with the exception of the case provided for in
Article 31—if six months have elapsed since the conduct contrary to the provisions of the law
became known, but not more than three years have elapsed since the said conduct occurred. No
proof may be filed because of failure to observe this time limit.
(2) Where the conduct contrary to the provisions of the law consists in some situation or state
not being eliminated, the time limits under paragraph (1) shall not be calculated until that situation
or state has been eliminated.
31.— (1) The competition control body or a consumer protection organization may start
proceedings against a person who through his illegal activities does harm to a broad range of
consumers, or a considerable amount of harm to assert the civil claims of consumers even where the
identity of the consumers who suffered the harm can no longer be established.
(2) The claim mentioned in paragraph (1) shall lapse one year after the harm was done.
(3) The court may instruct the offender to reduce the price, repair the goods, exchange the
goods or refund the price, as the case may be. In its judgment, the court may authorize the maker of
the claim to publish the judgment in a national daily newspaper at the expense of the offender.
(4) The offender is obliged to meet the claim of the aggrieved consumer in accordance with
the judgment. This shall not affect the consumer’s right to assert other claims against the offender
under the provisions of civil law.
Chapter VII Procedure
GENERAL PROCEDURAL RULES
32. The competition control body shall oversee the enforcement of the provisions of this Law.
33.— (1) Proceedings before the competition control body are initiated at the request of the
interested party or ex officio. A plea may be lodged by the person harmed or liable to be harmed by
the unlawful activity, and whose rights or legitimate interests are affected by the case.
(2) If proceedings are initiated at the request of the interested party, the plea must include all
the particulars necessary for judging the case. If the plea does not contain the necessary particulars,
the competition control body may return it once—specifying a time limit—for rectification; in that
case, the time limits for processing shall be calculated from the second lodging of the plea.
34.— (1) Unless this Law provides otherwise, the provisions of Law No. IV of 1957 on the
General Rules of Procedure of the State Administration shall apply to proceedings before the
competition control body.
(2) Unless the law imposes another time limit, the competition control body shall deliver a
ruling within 60 days. That time limit shall be calculated from the lodging of the plea in the case of
proceedings initiated at the request of the interested party, from the start of the investigation in the
case of proceedings initiated ex officio and from receipt in the case of proceedings referred by a
court. The competition control body may extend the time limit once by a maximum of 60 days; the
parties shall be notified prior to the expiration of the original time limit.
(3) The competition control body—including the person it has delegated to take part in the
proceedings—shall keep in confidence any business secrets that come to its or his notice.
35.— (1) The procedure of the competition control body shall consist of the following stages:
(a) investigation;
(b) hearing in Council and decisionmaking by the Council (Article 55(1)).
(2) In justified cases the competition control body may hear the body representing the
professional interests of the parties to the case and shall hear it at the request of the interested party.
36.— (1) The competition control body, or the person conducting the investigation on its
behalf, is authorized, for the performance of its or his duties, under the law:
(a) to oblige the entrepreneur to disclose information —without delay according to the nature
of the case—and to procure information on the premises;
(b) to conduct an investigation with the entrepreneur, including access to documents relating
to economic activities, even if those contain State, service or business secrets:
(c) to copy or take extracts from the documents.
(2) The person carrying out an investigation may not seize the original documents of an
entrepreneur unless there is reason to suspect a serious violation of the law, or unless there is a risk
of the documents being tampered with or destroyed.
(3) The person carrying out the investigation may enter any premises of the entrepreneur, and
demand either oral or written information from any of his employees.
(4) In information is needed from other entrepreneurs or State and social bodies for the
purposes of the investigation, they are obliged to disclose the information and provide the requisite
documents.
37.— (1) On completion of the investigation, the competition control body shall conduct a
hearing in Council.
(2) The day of the hearing shall be set in such a way that the applicant and other persons
involved in the case (hereinafter referred to as “parties”) have the opportunity to inspect the
documents on which the investigation was based and to prepare for the hearing.
38.— (1) The parties may attend the hearing in person or delegate representatives, and may
comment on observations made by the competition control body, on statements made at the hearing
and on the documents submitted. They may submit their own evidence up to the completion of the
hearing.
(2) The Council hearing the case is authorized, before it makes a decision, to take temporary
measures should there be an immediate need for such measures to protect the legal or economic
interests of the parties, or if the emergence or continued existence and development of economic
competition are at risk.
(3) The hearing shall not be open to the public except in the case of proceedings in connection
with a ban on the abuse of economic superiority and on consumer deception.
39.— (1) The Council hearing the case shall make a ruling after the hearing. A ruling may
also be made without a hearing with the agreement of the parties. The ruling should be delivered to
those involved in the case.
(2) The Council hearing the case may publish its ruling on the substance in the official journal
of the Office of Economic Competition.
40.— (1) The following fees shall be payable for competition control matters—subject to the
exceptions specified in paragraph (2):
(a) 1,000 forints in proceedings initiated by natural persons—not including entrepreneurs;
(b) 100,000 forints concerning corporate alliances;
(c) 10,000 forints in all other cases.
(2) No fee shall be payable for competition control proceedings if the said proceedings of the
competition control body are initiated:
(a) in connection with the obligation to give prior notice of planned price increases;
(b) by referral of a case by a court for the setting of a fine (Article 47(2)).
(3) Fees under paragraph (1)(a) shall be paid in the form of stamps, and those under
paragraph (1)(b) and (c) shall be paid in specie to an account specified by the Ministry of Finance.
Fees for the proceedings of the competition control body shall be paid at the same time as the
request for competition control proceedings is filed. In the event of failure to do so, the request shall
be returned for rectification; in that case, the time limits for processing shall be counted from the
renewed filing of the request.
(4) The person whose illegal conduct has been proved shall pay the fees for the proceedings.
If, in connection with a corporate alliance, the proceedings were initiated on the basis of the
application requesting approval of the alliance or ex officio, the fee shall be paid jointly by the
parties involved in the corporate alliance.
(5) The provisions of special legislation shall apply to the fees for competition control
proceedings where the competition control is exercised by the State Securities Inspectorate, the
State Bank Inspectorate or the State Insurance Inspectorate.
(6) Where payment of the fees for proceedings represents a burden not commensurate with
the income or capital of the party concerned, the competition control body may exempt him from
payment of the said fees.
(7) Other costs incurred by the competition control body during the proceedings shall be
advanced by the State and shall be borne by the person whose illegal conduct is proved. If no
violation of law is found to have occurred, the other costs arising during the proceedings shall be
borne by the person at whose request they were initiated.
41.— (1) No appeal shall lie from a ruling passed by the competition control body. The
interested party may, within 30 days of notification of the ruling on the substance of the matter,
apply to the court for review of the said ruling. The application for review shall be filed with the
competition control body.
(2) The filing of an application for review shall have no staying effect, except in the case of a
ruling on the severity of a sanction.
(3) The competition control body shall convey the application for review of one of its rulings
together with the documents relating to the case—to a court within eight days of receipt.
(4) The competition control body may publish its ruling on the substance of the case even
where a court review of the said ruling has been applied for.
RULINGS OF THE COMPETITION CONTROL BODY
42.— (1) The competition control body:
(a) may apply to a court where the provisions of Articles 4 to 10 of this Law have been
violated, and where the violation seriously affects or jeopardizes the fairness of competition;
(b) shall make substantive rulings in other cases.
(2) If the interested party has applied to the competition control body on account of a
violation of the provisions of Articles 3 or 11 to 27, and the latter has established the existence of an
act of unfair competition (Articles 4 to 10), it shall call the interested party’s attention to the fact
that he can take his complaint to court.
43.— (1) The competition control body may, in its ruling:
(a) establish the fact of the violation of the law;
(b) prohibit the continuation of the illegal conduct;
(c) if the illegal conduct involves a risk of prejudice, prohibit the offender from engaging in
the said conduct, or oblige him to take measures necessary to avert prejudice, and where necessary
to provide security;
(d) declare that the agreement to restrict economic competition (the planned agreement) does
not fall under the aforesaid prohibition, or declare exemption; the ruling may be made subject to
conditions under Article 17(2) and (3);
(e) grant or deny approval of the corporate alliance; such approval may be made subject to
conditions;
(f) impose a sanction on those who violate the provisions of this Law;
(g) prohibit a planned price increase by virtue of the obligation of prior notification.
(2) Where the competition control body files a complaint with the court for violation of the
provisions of the law, the said body may assert the civil claims provided for in Article 29(1)(a), (b)
and (d).
44.— (1) The competition control body shall conclude its proceedings instituted in
connection with the prohibition of the agreement restricting economic competition within 45 days
from the said institution or transfer from the court. It can extend this time limit once by a maximum
of 45 days; the parties shall be notified accordingly prior to the expiration of the original time limit.
(2) Where the competition control body fails to meet the time limit under paragraph (1) in the
proceedings instituted under Article 18(1), the application shall be considered granted.
45.— (1) The competition control body shall notify the applicant of its ruling on his
application concerning a corporate alliance within 90 days following receipt of the said application.
The competition control body may extend the time limit once by a maximum of six months; the
parties shall be notified accordingly prior to the expiration of the original time limit.
(2) Where the competition control body fails to meet the original or extended time limit, the
application shall be considered granted.
(3) In the assessment of an application for approval, the advice of the competent Minister
shall be obtained.
46. If no approval has been sought for a corporate alliance, and the alliance would not have
been susceptible of approval even if an application had been sought, the competition control body
shall declare the invalidity of the alliance in a ruling within 90 days of the fact of the alliance
becoming known, and shall notify the parties concerned accordingly as well as the court keeping
the trade register. The competition control body may extend the time limit once by a maximum of
six months.
47.— (1) The competition control body shall in a ruling impose a fine on the person who
violates the provisions of the law.
(2) If the court, in its ruling, finds for the violation of the provisions of the law, it shall send
the said ruling to the competition control body for the imposition of a fine.
48.— (1) The amount of the fine shall be so calculated as to exceed by at least 30 percent the
material advantage achieved by means of the unlawful conduct, or the amount of the damage done
to consumers and competitors, but without exceeding double the amount in question. In cases
deserving special consideration, the fine may be set below the 30 percent level.
(2) In the absence of unjustified material advantage or damage, the amount of the fine shall be
set with due regard to all the circumstances of the case—and particularly the extent to which the
interests of competition are prejudiced.
COURT PROCEEDINGS
49.— (1) The provisions of Chapter XX of the Code of Civil Procedure shall be applied
mutatis mutandis in court proceedings initiated on the basis of an application for review of a ruling
of the competition control body (Article 41), subject to the derogations specified in the law. The
court may alter the ruling of the competition control body.
(2) Where the proceedings of the competition control body have been initiated on application,
the trial for review of the ruling shall also be initiated against the applicant.
(3) The court may instruct the competition control body to start new proceedings if significant
procedural violations have been committed in the competition control proceedings that cannot be
remedied in a court procedure, provided that the competition control proceedings were initiated on
application.
50. Trials initiated under this Lawwith the exception of the case provided for in
Article 63(2)—shall be within the jurisdiction of the county courts. The Metropolitan Court shall
have jurisdiction over trials under Article 49(1).
51. Where the interested party has turned to the court with his complaint over the violation of
the provisions of Articles 3 to 13, and in the course of the proceedings the court establishes also:
(a) that there has been abuse of economic superiority (Articles 20 to 22), the court shall judge
that question also:
(b) that there has been restriction or exclusion of economic competition (Articles 14 to 19), or
an unlawful corporate alliance of entrepreneurs (Articles 23 to 27), the court shall refer the case to
the competition control body with respect to those questions.
Chapter VIII Office of Economic Competition
52.— (1) The competition control assignments provided for in this Law and in the Law on
Pricing—with the exceptions specified in paragraph (2)—shall be performed by the Office of
Economic Competition.
(2) Competition control in the money and securities market and in insurance activities shall be
exercised by the State Securities Inspectorate, the State Bank Inspectorate and the State Insurance
Inspectorate; the provisions of special legislation shall be applied as to their procedure and to the
legal consequences of their action.
53.— (1) The Office of Economic Competition is a publicly financed body with a national
sphere of authority.
(2) The Office of Economic Competition is led by a President.
(3) The President and two VicePresidents of the Office of Economic Competition are
appointed for a term of six years, and relieved of their duties by the President of the Republic at the
proposal of the Prime Minister.
54.— (1) The terms of office of the President and VicePresidents of the Office of Economic
Competition shall end:
(a) on expiration of the term of their appointment;
(b) on their dismissal;
(c) on their resignation;
(d) on their death.
(2) The terms of office of the President and VicePresidents of the Office of Economic
Competition ends in dismissal where:
(a) they have committed a criminal act established in a res judicata sentence or have become
unfit for office in other ways;
(b) they have long been unfit for office;
(c) a circumstance incompatible with their office has not been eliminated.
55.— (1) Decisions of the Office of Economic Competition shall be taken by the Competition
Council, which shall meet as a Council of at least three members.
(2) The President of the Competition Council shall be one of the VicePresidents of the Office
of Economic Competition.
(3) The members of the Competition Council shall be appointed for an indefinite period of
time, and relieved of their duties, by the President of the Office of Economic Competition.
(4) The President and members of the Competition Council shall be answerable only to the
Law.
56.— (1) The President, VicePresidents and senior officials of the Office of Economic
Competition and the members of the Competition Council may not engage in any other lucrative
activity—with the exception of the legal relations arising from scientific, teaching and artistic
activity, from activities covered by copyright and patent protection and from editorial activities—
neither may they be senior officials, directors or managers of business enterprises.
(2) The persons listed in paragraph (1) may not be close relatives of each other (Civil Code,
Article 685(b)), and may not take part in the investigation of an entrepreneur with whom they or
their relatives have working, other workrelated or membership relations.
57.— (1) The occurrence of a cause of incompatibility shall be announced without delay:
(a) by the President and VicePresidents of the Office of Economic Competition to the Prime
Minister:
(b) by senior officials of the Office of Economic Competition and members of the
Competition Council to the President of the Office of Economic Competition.
(2) The person making the announcement shall eliminate the cause of compatibility within
eight days of the date of the announcement.
58.— (1) The President of the Office of Economic Competition shall report to Parliament
annually, or to the competent Parliamentary committee at its request but at least once a year, on the
activities of the Office of Economic Competition and on his experience of the application of the law
with respect to the freedom and fairness of economic competition.
(2) The President of the Office of Economic Competition shall—on being called upon to do
so—submit in writing his opinion on items of the Parliamentary agenda that relate to economic
competition.
59. The President of the Office of Economic Competition shall:
(a) direct the activities of the Office of Economic Competition, and ensure the observance of
legal provisions;
(b) take part in the sessions of Parliament;
(c) represent the Office of Economic Competition;
(d) issue the organizational rules of the Office of Economic Competition;
(e) exercise employers’ rights in relation to the employees of the Office of Economic
Competition.
60. The Minister is obliged to solicit the opinion of the Office of Economic Competition on
any draft legal enactment that restricts competition—particularly the pursuit of some activity or
access to a market—affords exclusive rights or contains pricing rules or marketing conditions.
61.— (1) The President of the Office of Economic Competition shall take part in an advisory
capacity in government meetings at which questions affecting the area of concern of the Office of
Economic Competition are discussed.
(2) The Office of Economic Competition shall, at the request of the Government and
Ministers, impart information on its activities, with the exception of pending competition control
proceedings.
62. The Ministries, the State Property Agency, local government bodies and other State
administrations shall impart information at the request of the Office of Economic Competition in
connection with its competition control activities.
Final Provisions
63.— (1) Where a ruling handed down by a State administration violates the freedom of
competition, the competition control body shall—with respect to the right to legal redress—be
regarded as a party to any proceedings.
(2) The competition control body may appeal to the court for the review of a ruling under
paragraph (1) within 30 days of any violation of the law being noted. No such legal remedy shall,
however, be available when six months have elapsed since the ruling became final; no verification
shall be possible where the said time limit has not been met.
64. Legal consequences imposed for violation of the provisions of the law and the enforced
civil claims shall not affect the possibility of applying other civil remedies or of instituting
administrative or criminal proceedings as provided in special legal enactments.
65. The competition control body may also examine agreements for the restriction or
exclusion of economic competition, concluded prior to the entry into force of this Law, and may
also hand down rulings under Article 43(2)(b) if the parties display conduct corresponding to the
unlawful agreement even after the entry into force of the said Law.
66. Proceedings instituted for the imposition of fines that are still pending on the entry into
force of this Law shall be discontinued.
67.— (1) This Law shall enter into force on January 1, 1991.
(2) At the same time as this Law takes effect.
(a) Article 3(6) of Law No. IV of 1957 on the General Rules of State Administrative
Procedure is replaced by the following provisions:
“(6) This Law shall be applied in matters concerning national defense, the foreign
currency authority, the administration of foreign trade and social insurance, and in matters
governed by the Laws on the Prohibition of Unfair Market Practice and on Pricing, unless
otherwise provided in a legal enactment.”
(b) Article 321 of Law No. VI of 1988 on Business Enterprises is supplemented with the
following provision:
“The provisions of the Law on the Prohibition of Unfair Market Practice shall be taken
into consideration at the same time.”
(c) Article 10 of No. Law VI of 1977 on State Companies is supplemented with the following
provision:
“In the process of alliance (affiliation, merger), the provisions on the control of
corporate alliances in the Law on the Prohibition of Market Practice shall also be taken into
consideration.”
(d) Article 60(1) of Law No. XIII of 1989 on the Restructuring of Economic Organizations
and Business Enterprises is supplemented with the following provision:
“In the process of alliance (affiliation, merger), the provisions on the control of
corporate alliances in the Law on the Prohibition of Unfair Market Practice shall also be taken
into consideration.”
(e) Article 45 of Law No. III of 1971 on Cooperatives is supplemented with the following
paragraph (3):
“(3) In the process of alliance (affiliation, merger), the provisions on the control of
corporate alliances in the Law on the Prohibition of Unfair Market Practice shall also be taken
into consideration.”
(f) Law No. III of 1967 on Agricultural Production Cooperatives is supplemented with the
following Article 128A:
“128A. In the process of alliance (affiliation, merger), the provisions on the control of
corporate alliances in the Law on the Prohibition of Unfair Market Practice shall also be taken
into consideration.”
(3) At the same time as this Law takes effect, the following shall be repealed:
—Law No. IV of 1984 on the Prohibition of Unfair Economic Activities;
—Council of Ministers Decree No. 32/1984 (October 31) MT on Fines, and Council of
Ministers Decree No. 69/1987 (December 7) MT amending the same;
—Council of Ministers Decree No. 37/1984 (November 5) MT on Market Supervision and
Article 3 of Council of Ministers Decree No. 25/1988 (April 8) MT amending the same.