The Competition Authority also fights against inflation

By: Trademagazin Date: 2022. 11. 30. 10:14

The Economic Competition Authority (GVH) is stepping up its competition law efforts related to the suppression of inflation. The GVH started a six-month consultation series in order to inform itself about market processes and draw the attention of economic operators to the importance of observing competition law in the current inflationary environment. The competition authority hosted the Hungarian Bakers’ Association at the first event of the consultation series.

Complying with competition law is particularly important now

The inflationary environment poses a serious challenge to businesses, which are often faced with a sharp increase in some of their costs, which they are unable to manage without raising their own prices. At the same time, it is important that the situation is not worsened even by the restriction of competition, because it would lead to further price increases, which would put consumers in an increasingly difficult situation. Following the outbreak of the war in Ukraine, the European Competition Network (ECN), which brings together the competition authorities of the member states of the European Union and the European Commission, published a joint statement on the application of competition law in a war situation, which the GVH considers to be the guiding principle.

Therefore, the national competition authority started a six-month consultation series, the purpose of which is to inform about the processes of the markets and draw the attention of the economic actors and the associations representing them to the key importance of clean competition in order to curb inflation.

Balázs Csaba Rigó, the President of the Economic Competition Authority, pointed out in relation to the launch of the consultation series:

“GVH protects consumers and helps businesses. In times of inflation, for the correct application of competition law, it is essential to know the management conditions of market participants. It is also important to strengthen the competition law awareness of businesses, because if they pass on their extra costs to consumers in a coordinated manner, they are violating the competition law. Instead, it can be expected that market players will curb their rising costs in an innovative way. Everyone must do their part in reducing inflation.”

On November 29, 2022, at the first event of the series, László Bak, Deputy President of the Economic Competition Office, held a consultation with the leaders of the Hungarian Bakers’ Association on current issues related to the management of inflation. At the meeting, the deputy president of the GVH was informed on the one hand about the current situation and ideas of the association and the market players it represents, and on the other hand gave information about the opportunities and limitations arising from the rules of competition law.