It has been reported that a lack of transparency remains a significant challenge in public procurement procedures in Hungary, particularly for foreign bidders. Concerns relate to the use of overly narrow tender specifications and implicit preferences for local vendors and state-owned enterprises. These issues have been echoed by both the business community and foreign governments, which have noted persistent obstacles to fair competition. Several multinational firms have further indicated that participation in Hungarian public procurements entails unacceptably high levels of corruption and compliance risk.
Moreover, in April 2022, the European Commission launched a budget conditionality mechanism against Hungary over the “systemic irregularities, deficiencies and weaknesses” in its public procurement procedures.

There are no foreign ownership limitations in sectors relevant for digital trade.

Act LVII of 2018 on Controlling Foreign Investments Violating Hungary’s Security Interests establishes a national security-related screening mechanism. According to Art. 2 of the law, a foreign investment needs prior ministerial approval is required, when (i) 25% of the shares (10% in publicly traded companies) are acquired in companies critical to the national security; (ii) decisive influence over such companies is acquired; (iii) a branch office is established in Hungary; or (iv) a right to use/operate a sensitive infrastructure or asset is acquired. Companies whose activities are essential to national security include active cryptography, electronic communication and public communication systems.
According to Art. 1 of the law, a foreign investor is (i) a person or organisation from outside the European Union (EU), European Economic Area (EEA), or Swiss Confederation; and (ii) a legal entity registered in the EU, EEA, or Swiss Confederation that acquires ownership or interest in a Hungarian company, if the controlling person or entity is from outside the EU, EEA, or Swiss Confederation.

Since May 2020, Hungary has applied an “Alternative FDI Regime”, established under Chapter 85 of Act LVIII of 2020 and its implementing Government Decree. Originally designed as a temporary measure set to expire at the end of 2021, the regime was extended and reinstated through Government Decree No. 561/2022, thereby making it permanent.
The regime applies to a broad range of transactions, not limited to share acquisitions. It encompasses convertible instruments, usufruct rights, corporate transformations, asset purchases, capital injections, and in-kind contributions.
Under Art. 3 of Decree No. 561/2022, notification is required whenever a foreign investor directly or indirectly acquires:
(i) at least a 5% stake in a strategic company (or 3% if the company is publicly listed), provided the transaction value reaches HUF 350 million (approx. EUR 900,000); or
(ii) at least a 10% stake, regardless of deal value; or
(iii) a stake resulting in the combined shareholding of foreign investors reaching 25% in a strategic company, regardless of deal value.
According to Art. 2 of the Decree a strategic company is defined as a limited liability company, a privately held joint-stock company, a publicly held joint-stock company, or a higher education institution with a registered office in Hungary, whose main or additional activity falls within a sector of strategic significance as defined in Annex 1, particularly in the energy, transportation, or communication sectors, as well as industries defined under Regulation (EU) 2019/452 of the European Parliament and Council of 19 March 2019, which establishes a framework for the screening of foreign direct investments into the Union.
Annex 1 lists an extensive coverage of sectors, including publishing activities, telecommunications, and information technology services, among others.

Under Art. 51 of Act XXXIII of 1995 on the protection of inventions, foreign applicants that have no residency within the EU or the European Economic Area (EEA) have to be represented by an authorised attorney-at-law in front of the Hungarian Intellectual Property Office.

The Consumer Rights Directive 2011/83/EU provides an updated framework aimed at encouraging online sales. The Directive has been implemented through an amendment of the Consumer Protection Act.

The Czech Republic has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

The Czech Republic has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

The Czech Republic has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.

The EU Directive on Audiovisual Media Services (AVMS) covers traditional broadcasting services as well as audiovisual media services provided on-demand, including via the Internet. Art. 13.1 provides for Member States to secure a minimum 30% share of European works in the catalogues as well as "ensuring prominence" of those works. "Prominence" involves promoting European works by facilitating access to such works using any appropriate means to ensure their prominence. The Directive has been implemented by Member States in different ways, ranging from very extensive and detailed measures to a mere reference to the general obligation to promote European works.
In the Czech Republic, the EU Directive was transposed into domestic law through the amendment of the Act on On-Demand Audiovisual Media Services of August 2022 (242/2022 Coll.). According to Section 7 of the Act, on-demand audiovisual media service providers must allocate at least 30% of the total number of programmes in their catalogues to European works and ensure these works are prominently featured. Notably, news programmes, sports events, and competition programmes are excluded from the total number of programmes used to calculate the share of European works.

The Czech Republic does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is required in certain cases.
Pursuant to Art. 51 of Act No. 127/2005 Coll. on Electronic Communications, the Czech Telecommunications Office (CTU) is mandated to analyse the relevant markets, in order to assess whether they are effectively competitive. On the basis of the market analysis, the CTU may designate an undertaking as having significant market power and, where appropriate, impose specific obligations, including the obligation to maintain separate records of costs and revenues.

It is reported that the Czech Telecommunication Office (CTU), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

Line 1.4 of Annex No. 2 to Decree No. 316/2021 stipulates that specific operational data, which includes information relating to identified or identifiable users, must remain within the territory of the Member States of the European Union and the European Free Trade Association. This condition applies to cloud computing services offered to public authorities, thereby influencing the management of personal data within the public sector.

It is reported that, pursuant to Czech tax and financial record legislation, VAT invoices issued under Act No. 235/2004 Coll., the VAT Act, must be stored within the territory of the Czech Republic. However, storage abroad is permitted provided that immediate remote access is ensured. In such cases, the tax authorities must be notified in advance of the storage location.

The European Union General Data Protection Regulation (GDPR) provides a comprehensive framework for data protection that applies to all EU Member States. The Personal Data Processing Act transposes the GDPR.