The European Union General Data Protection Regulation (GDPR) provides a comprehensive framework for data protection that applies to all EU Member States. Hungary implemented the GDPR by amending the Act CXII of 2011 on the Right to Informational Self-determination and on the Freedom of Information.

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 that implemented the Directive have been overturned. This is the case in Hungary. Under Art. 159/A of Act C of 2003 on Electronic Communications, internet service providers have to store connection data for 12 months at least.

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.

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 harbour. 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, as regulated in Section 14/A.

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 harbour. 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, as regulated in Section 14/A.

Hungary is a party to the Patent Cooperation Treaty (PCT).

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.

It is reported that internet piracy in Hungary is a significant issue. Stakeholders have noted that the Hungarian government should allocate sufficient resources to its law enforcement authorities to effectively combat intellectual property rights violations, particularly those occurring online.

Hungary and the European Union have adopted the World Intellectual Property Organization (WIPO) Copyright Treaty. Hungary ratified the Treaty on 27 November 1998, with its provisions coming into force on 6 March 2002. Subsequently, the European Union ratified the Treaty on 14 December 2009, and it entered into effect on 14 March 2010.

Hungary and the European Union have adopted the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty. Hungary ratified the Treaty on 27 November 1998, with its provisions coming into force on 20 May 2002. Subsequently, the European Union ratified the Treaty on 14 December 2009, and it entered into effect on 14 March 2010.

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.

It is reported that passive sharing is mandated and is effective in both the mobile (based on commercial agreements) and fixed sectors. Pursuant to Art. 90 of Act C of 2003 on Electronic Communications, service providers that hold ownership or usage rights over an electronic communications facility are required to enter into contracts to ensure the shared use of network elements and related facilities. The obligation specifically covers ownership and access to structures, internal wiring, support columns, antennas, towers and other supporting constructions, substructures, cable ducts, inspection chambers, and cabinets. However, it does not extend to parts of the structure that are open to customer traffic and serve that particular function.
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 must 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.

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.