12 February 2025
roadmap
hungary
How has competition law damages litigation evolved in Hungary over the past decade?
On 26 November 2014, the EU adopted the groundbreaking Damages Directive (Directive 2014/104/EU of the European Parliament and of the Council). The Directive promised to simplify and harmonise the process of claiming damages for competition law infringements across the EU. Now, ten years later, has it genuinely become easier for victims of EU and national competition law infringements to seek damages before national courts? The answer is not straightforward, especially in Hungary. Below, we outline a few key points to consider.
Temporal scope of the Directive
The Directive encompasses both substantive and procedural rules. Procedural rules, such as disclosure of evidence, apply to any Hungarian court proceedings initiated after 26 December 2014. However, substantive rules, including various presumptions regarding the occurrence of damage and the passing-on defence, apply only to infringements committed after the implementation date of 15 January 2017. Time-limitation rules have since received special implementing provisions, but as a general rule, they also cannot apply retroactively. Consequently, many ongoing damages cases in Hungary do not benefit from these key provisions, as they are based on infringements committed prior to that date. Nevertheless, Hungarian courts often attempt to interpret national law in line with the Directive's intent, citing the "principle of effectiveness".
Time limitation
This is a crucial issue regarding damage claims in Hungary. Under the pre-Directive Hungarian rules (which are still applicable in general and also in some competition damages cases), the five-year statute of limitations begins when the infringement occurs. After five years, plaintiffs have one additional year to file a lawsuit upon gaining sufficient knowledge of the infringement. The Directive extends this timeline by starting the five-year period not from the infringement but from when sufficient knowledge is acquired. Additionally, it suspends the limitation period until the competition authority's decision becomes final, granting plaintiffs an extra year after the final decision to submit their claims.
As a new development, Hungarian courts have adopted a more plaintiff-friendly interpretation even under the old rules. Court practice now prevents claims from being time-barred for a year after the full decision of the competition authority is published. Previously, even a detailed press release of the competition authority's decision could be considered "sufficient knowledge".
10 % presumption
Hungary is one of the few countries in the EU to implement a rebuttable presumption on the extent of overcharge caused by cartels. Introduced in 2009, well before the Directive, the 10 % presumption shifts the burden of proof from the claimants to the defendants concerning the amount of overcharge, enhancing procedural efficiency.
Key takeaways
The last ten years have seen a significant increase in damages proceedings related to competition law infringements in Hungary. However, as far as we are aware, the substantive provisions of the Directive have not yet been applied in Hungarian court cases, as the underlying infringements occurred before 15 January 2017. Instead, Hungarian courts have begun interpreting pre-Directive national rules as closely as possible to the Directive's provisions. Therefore, it may still be somewhat early to assess all practical issues surrounding the Directive's application in Hungary, but this should change in the coming year(s)
In any case, experience clearly shows that competition law damages litigation presents many challenges, including preliminary questions such as jurisdiction, applicable law and time-barred claims, as well as issues related to evidence taking. The field is still continuously evolving, shaped by both Hungarian and EU court practice, highlighting the need for experienced legal assistance.
authors: Anna Turi, Márk Kovács
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