Database

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IRELAND

Since June 2015

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Nationality/residency requirement for directors or managers
Companies Act 2014
Section 137 of the Companies Act 2014 states that every Irish company must have at least one director who is resident in the European Economic Area (EEA), unless either:
- The company has filed a non-resident bond to the value of EUR 25,000 with the Companies Registration Office;
- The company holds a certificate from the Companies Registration Office confirming that the company has a real and continuous link with one or more economic activities in Ireland.
Coverage Horizontal

IRELAND

Since March 2004, last amended in February 2014
Since June 2016

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Utilities Directive (2014/25/EU)

S.I. No. 286/2016 - European Union (Award of Contracts by Utility Undertakings) Regulations 2016
Art. 85 of the Utilities Directive (2014/25/EU) contains provisions allowing contracting public entities to reject foreign goods not covered by any EU international commitments from its tender procedures. In these cases, a tender submitted for the award of a supply contract may be rejected where the proportion of the products originating in third countries exceeds 50% of the total value of the products constituting the tender (Art. 85.2). Additionally, in cases of equivalent offers, the provisions provide for a preference for European tenders and tenders covered by EU's international obligations. In practice, this possibility has rarely been used.
In 2016, the Directive has been transposed with the Law S.I. No. 286/2016 - European Union (Award of Contracts by Utility Undertakings) Regulations 2016.
Coverage Any product sold to a utility provider including software used in telecommunication network equipment

HUNGARY

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
Lack of adoption of UNCITRAL Model Law on Electronic Commerce
Hungary has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal

HUNGARY

N/A

Pillar Online sales and transactions  |  Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signature
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Hungary has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal

HUNGARY

N/A

Pillar Online sales and transactions  |  Sub-pillar Ratification of the UN Convention of Electronic Communications
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Hungary has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

HUNGARY

Since 2001, last amended in 2020

Pillar Online sales and transactions  |  Sub-pillar Local presence requirement for digital services providers
Application of the Act CVII of 2001 on Electronic Commerce
Under Section 15/C of the Act CVII of 2001 on Electronic Commerce, video sharing platform services are subject to a notification requirement. It is reported that, in the authorities' current practice, this notification has to include an official registration number, which is only available to companies with a local presence in Hungary. According to industry reports, this bureaucratic hurdle concerns other digital services and e-commerce as well.
Coverage Video sharing platforms

HUNGARY

Since June 2014
Since December 1997, as amended in September 2019

Pillar Online sales and transactions  |  Sub-pillar Framework for consumer protection applicable to online commerce
Consumer Rights Directive 2011/83/EU

Act CLV of 1997 on Consumer Protection
The Consumer Rights Directive 2011/83/EU provides an updated framework aimed at encouraging online sales. The Directive has been implemented by the Act CLV of 1997 on Consumer Protection (as amended in September 2019).
Coverage Horizontal

HUNGARY

Reported in 2022

Pillar Online sales and transactions  |  Sub-pillar Restrictions on domain names
".hu" domain registration policy
Only natural persons and entities with residency in the EU or the European Economic Area (EEA) can apply for a ".hu" domain.
Coverage Horizontal

HUNGARY

Since March 2010, entry into force in May 2010, last amended in 2018
Since 2019

Pillar Quantitative trade restrictions for ICT goods, products and online services  |  Sub-pillar Local content requirements (LCRs) on ICT goods for the commercial market
EU Directive on Audiovisual Media Services (AVMS)

Act LXIII of 2019 amending certain laws relating to media services 2019 (évi LXIII. Törvény a médiaszolgáltatással kapcsolatos egyes törvények módosításáról)
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. Article 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 through facilitating access to such works using any appropriate means to ensure prominence of European works. 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.
Hungary has implemented Article 13 at the Act LXIII of 2019 amending certain laws relating to media services 2019 by imposing on video-on-demand (VOD) providers the obligation to reserve a share of European works in their catalogue.
Coverage On-demand audiovisual service

HUNGARY

Since 2016

Pillar Quantitative trade restrictions for ICT goods, products and online services  |  Sub-pillar Import ban applied on ICT goods, products and online services
Regulation of ride-sharing and taxi services
It is reported that Hungary's ban on ride-sharing services is implemented by blocking their apps and websites. Under Hungarian legislation, Uber and other ride-sharing companies are classified as "illegal dispatcher services", as they do not conform to the same regulations as conventional taxi operators. Uber considered that the new legislation made its business model unfeasible in Hungary and left the country in 2016.
Coverage Ride-sharing services

HUNGARY

N/A

Pillar Intermediary liability  |  Sub-pillar User identity requirement
Mandatory SIM card registration
It is reported that Hungary imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card, or a passport in case of foreigners, to activate a new prepaid SIM card.
Coverage Horizontal

HUNGARY

Since July 2000
Since 2001

Pillar Intermediary liability  |  Sub-pillar Safe harbor for intermediaries for copyright infringement
Directive 2000/31/EC (E-Commerce Directive)

Act CVIII of 2001 on Electronic Commerce Sections
The Directive 2000/31/EC (E-Commerce Directive) is the legal basis governing the liability of Internet Services Providers (ISPs) in the EU Member States and includes a conditional safe harbor. Not all Member States have transposed the relevant articles consistently, leading to divergent national case law that could cause legal insecurity on an EU level.
Under Section 7/3 of the Act CVIII on Electronic Commerce, which transposes Directive 2000/31/EC, service providers and intermediaries are protected from liability for third-party content. However, this exemption does not cover disguised advertising, regulated in Section 14/A.
Coverage Horizontal

HUNGARY

Since July 2000
Since 2001

Pillar Intermediary liability  |  Sub-pillar Safe harbor for intermediaries for any activity other than copyright infringement
Directive 2000/31/EC (E-Commerce Directive)

Act CVIII of 2001 on Electronic Commerce Sections
The Directive 2000/31/EC (E-Commerce Directive) is the legal basis governing the liability of Internet Services Providers (ISPs) in the EU Member States and includes a conditional safe harbor. Not all Member States have transposed the relevant articles consistently, leading to divergent national case law that could cause legal insecurity on an EU level.
Under Section 7/3 of the Act CVIII on Electronic Commerce, which transposes Directive 2000/31/EC, service providers and intermediaries are protected from liability for third-party content. However, this exemption does not cover disguised advertising, regulated in Section 14/A.
Coverage Horizontal

HUNGARY

Since 2003

Pillar Domestic Data policies  |  Sub-pillar Requirement to allow the government to access personal data collected
Act C of 2003 on Electronic Communications
Art. 159/A of Act C of 2003 provides that mobile service providers and ISPs must provide user data to the authorities upon request. The Constitutional Court found this law unconstitutional in 2022 and called on parliament to amend the legislation by the end of the year, but it is reported that parliament failed to comply.
Coverage Mobile service providers and ISPs

HUNGARY

Since 2006
In April 2014
Since 2003

Pillar Domestic Data policies  |  Sub-pillar Minimum period for data retention
Data Retention Directive 2006/24/EC

Judgment European Court of Justice in Joined Cases C-293/12 and C-594/12 Digital Rights Ireland and Seitlinger and Others

Act C of 2003 on Electronic Communications
Under the EU Directive on Data Retention, operators were required to retain certain categories of traffic and location data (excluding the content of those communications) for a period between six months and two years and to make them available, on request, to law enforcement authorities for the purposes of investigating, detecting and prosecuting serious crime and terrorism. On 8 April 2014, the Court of Justice of the European Union declared the Directive invalid. However, not all national laws which implemented the Directive have been overturned. This is the case of Hungary. Under Art. 159/A of the Act C of 2003 on Electronic Communications, internet service providers have to store connection data for 12 months at least.
Coverage Telecommunications sector