What is competition law?
Competition law is an area of economy law which aims to protect the fair competition. The main purpose of this area of law is to control and protect the competition as a basis of the market-economy, since only a fair competition among goods, services etc. of undertakings is able to ensure the consumer welfare.
The two main areas of this field are the law against unfair competition and the law against restrictive market practices.
Rules against unfair competition
Competition law forbids any kind of unfair market practices, such as abuse of reputation, business secrecy violation, boycott, false designation of goods or services.
The law against restrictive market practices
This area incorporates the following:
The prohibition of restrictive agreements (cartel prohibition), the prohibition of abuse of a dominant position, the control of concentration of undertakings (merger control).
The field of law against restrictive market practices is controlled by the Hungarian Competition Authority. The fine for an infringement may amount to 10% of the net turnover achieved in the preceding business year.
In order to avoid an infringement, it is worthwhile to seek an advice of an expert, and to establish a competition compliance programme.
- Implementing competition law compliance – competition law audits, compliance programs, dawn raid guides
- Trainings in competition law compliance
- Sales trainings
- Legal opinion on pricing questions
- Representation of clients in unfair copying, abuse of reputation, and business secrecy infringement cases
- Legal opinion on business conduct in the light of unfair sales practices
- Legal opinion on business behaviour regarding retail businesses and towards consumers
- Representation before the Competition Authority and before courts
- Representation in alternative dispute resolutions (conciliatory) and self-regulatory bodies
- Legal opinion on contracts
REFERENCES AND SOLVED CASES:
- Permanent legal advice for multinational companies to avoid restrictive agreements, and also to avoid unfair market practices against consumers
- Permanent legal advice for companies with dominant position in order to develop lawful market behaviour
- Permanent legal advice for multinational companies on fair pricing issues
- Establishment and implementation of competition compliance program for a multinational toy manufacturer company
- Regular training courses and trainings in order to ensure competition law compliance
- Monitoring of fair market behaviour of competitors, as well as, if necessary, reporting to authorities
- Submission of merger clearance files of undertakings to the Hungarian Competition Authority and full representation of a client in the food industry in such case
- Representation before courts and other authorities in several cases