Database

Browse Database

HUNGARY

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Presence of independent telecom authority
Presence of independent telecom authority
It is reported that the National Media and Infocommunications Authority (NMHH), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.
Coverage Telecommunications sector

HUNGARY

Since 2013, as amended in 2018, entry into force in January 2019

Pillar Cross-border data policies  |  Sub-pillar Ban to transfer and local processing requirement
Act L of 2013 on Electronic information security of state and local government organizations
Under Section 3 of the Act L of 2013 on Electronic information security of state and local government organizations, data processing for certain institutions, including governmental bodies, National Bank, or local municipalities, must be provided from the territory of Hungary.
Coverage Public sector

HUNGARY

N/A

Pillar Telecom infrastructure and competition  |  Sub-pillar Functional/accounting separation for operators with significant market power
Lack of mandatory functional separation for dominant network operators
It is reported that Hungary does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, accounting separation is required by law.
Coverage Telecommunications sector

HUNGARY

Since June 2016
Since November 2018

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Effective protection covering trade secrets
Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets)

Act LIV of 2018 on the protection of trade secrets
The Directive 2016/943 on the protection of undisclosed know-how and business information (trade secrets) is key in harmonising national laws concerning trade secrets. Hungary transposed the Directive through Act LIV of 2018 on the protection of trade secrets.
Coverage Horizontal

HUNGARY

Since May 2014

Pillar Telecom infrastructure and competition  |  Sub-pillar Passive infrastructure sharing obligation
Directive 2014/61/EU on measures to reduce the cost of deploying high-speed electronic communications networks
It is reported that passive sharing is mandated and is effective in both the mobile (based on commercial agreements) and fixed sectors. In addition, Directive 2014/61/EU (Art. 3.2) establishes that Member States shall ensure that, upon written request of an undertaking providing or authorised to provide public communications networks, any network operator has the obligation to meet all reasonable requests for access to its physical infrastructure under fair and reasonable terms and conditions, including price, with a view to deploying elements of high-speed electronic communications networks. Such written request shall specify the elements of the project for which the access is requested, including a specific time frame.
Coverage Telecommunications sector

HUNGARY

Since May 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
Hungary has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

HUNGARY

Since March 2002

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Signature of the WIPO Copyright Treaty
WIPO Copyright Treaty
Hungary has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

HUNGARY

Since May 2001
Since 1999

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Directive 2001/29/EC

Act LXXVI of 1999 on Copyright
There is no general principle for the use of copyright protected material comparable to the fair use/fair dealing principles. Directive 2001/29/EC defines an optional, but exhaustive set of limitations from the author´s exclusive rights under the control of the “three-step test” in line with the Berne Convention that establishes three cumulative conditions to the limitations and exceptions of a copyright holder’s rights. The Directive has been transposed by Member States with significant freedom.
Chapter 4 of the Act LXXVI of 1999 establishes copyright exemptions, including a right of citation, the right of use for educational purposes, private use and news reporting.
Coverage Horizontal

HUNGARY

Reported in 2021

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
Foreign companies report that online piracy is a serious problem in Hungary, exacerbated by insufficient enforcement resources. However, it is reported that the rate of unlicensed software installation in the country was 36% in 2017 (below the 57% rate of Central and Eastern European countries), for an estimated commercial value of unlicensed software of USD 104 million.
Coverage Horizontal

HUNGARY

Since June 1980

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty
Patent Cooperation Treaty (PCT)
Hungary is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

HUNGARY

Since June 1995

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
Act XXXIII of 1995 on the protection of inventions by patents
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.
Coverage Horizontal

HUNGARY

Since March 2019
Since June 2020

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Screening of investment and acquisitions
Regulation 2019/452 establishing a framework for the screening of foreign direct investments

Act LVIII of 2020 on transitional rules related to the termination of state of danger and on epidemiological preparedness, Decree 289/2020
Under the Regulation 2019/452, Member States may maintain their existing investments screening mechanisms (21 Member States currently do), adopt new ones or remain without such national mechanisms. The Commission keeps an up-to-date list of screening laws in the EU. Member States must notify the Commission who may issue an opinion when an investment threatens the security or public order of more than one Member State, or when an investment could undermine a strategic project or programme of interest to the whole EU, such as Horizon 2020 or Galileo. The final decision remains with the Member State.
According to Act LVIII of 2020, Section 276, implemented by Decree 289/2020, acquisitions of Hungarian companies by foreign persons or entities in strategic sectors are subject to authorisation. This includes the information technology sector. While several cases of foreign investment blocking are known to have occurred in Hungary, none of these were in sectors relevant for digital trade.
Coverage Horizontal

HUNGARY

Since March 2004, last amended in February 2014
Since November 2015

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

Act CXLIII of 2015 on public procurement (2015. évi CXLIII. törvény a közbeszerzésekről)
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 Hungary, the Directive has been transposed with the Act CXLIII of 2015 on public procurement.
Coverage Any product sold to a utility provider including software used in telecommunication network equipment

HUNGARY

Reported in 2021

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Lack of transparency in public procurement
The EU Commission criticised Hungary's public procurement mechanism for a lack of competition, transparency as well as the prevalence of systemic fraud. Moreover, there are reports of complaints by foreign firms for the lack of transparency is a challenge for public procurement procedures in Hungary, including with respect to overly narrow definitions of tenders, and implicit biases in favor of local vendors and state-owned enterprises.
Coverage Horizontal

HUNGARY

Since September 2015

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Act CLXLIII of 2015 on Public Procurement
Under Art. 62.k of the Act CLXLIII on Public Procurement, foreign firms are excluded from government procurement if they are registered in a country that is neither a EU member nor a member of the WTO Government Procurement Agreement, or if they are registered in a country that has no double taxation treaty with Hungary or the EU.
Coverage Horizontal