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Wednesday
Jul152009

Hungarian changes to private antitrust enforcement

DateWednesday, July 15, 2009 at 06:01PM

On 1 June 2009 the amended Competition Act came into force in Hungary. Among the changes, those concerning private enforcement of competition law are most interesting. In the spirit of facilitating private enforcement, while at the same time not jeopardising the aims of competition law and its public enforcement, the Competition Act deals with a number of issues in a rather ambitious manner.

First of all, ASSESSMENT OF DAMAGES: it is clear that quantification of damages may be a challenge to claimants in private enforcement actions involving competition law - thus Article 88/C of the Competition Act offers a rebuttable presumption that the cartel's effect on the market was to increase the prices by 10%.

Second, in order to ensure the EFFECT OF LENIENCY ARRANGEMENTS, the Act (Article 88/D) offers the following solution: 1. actions against those cartel members who apply for leniency are to be stayed until the decision of the Competition Authority is final, and 2. those in receipt of leniency immunity may refuse to pay damages (in such cases they will only be forced to pay damages if these cannot be recovered from other cartel members).

(Source: M. Thill-Tayara, E. van den Broucke, M. Giner: "Private Enforcement: Hungary's Amended Competition Act Offers Some Innovative Options", 2 June 2009, www.mondaq.com).

See this link for more information about Antitrust Enforcement.

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