In case of cartel suspect, they firms have to demonstrate

By: trademagazin Date: 2009. 06. 16. 00:28

There is no international example of the modification of the Hungarian Competition Act. From now the sued companies have to prove, that their illegal market behavior put less impact on the market price than 10 percent.

The modification which came into force in June 2009 is the introduction of the the legal presumption which is in accordance with the view that the cartel price impact is 10 percent on the market. The importance of the presumption is that the burden of proof is reversed, that is not the applicant's initial lawsuit for damages, but the cartelling firms have to demonstrate that 10 percent less price increase caused by the unlawful and illegal market behavior. The amendment is intended to encourage victims to start compensation proceedings. Up to now, the cartel suspects forced by Economic Competition Authority to only pay an administrative fine because the proof of the extent of the damage had serious procedural and practical obstacles encountered in the applicant's site.




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