Corporate mergers at historic high – GVH works with faster procedures and artificial intelligence

Record year for mergers: revenue of more than HUF 1,000 billion

“For the GVH, 2024 was primarily a year of mergers,” said Csaba Rigó. The number of notified corporate mergers soared during the year, with the revenue of the acquired companies exceeding HUF 1,000 billion, which is a historical milestone. Acquisitions are common during recessions: more crisis-resistant companies integrate their weaker competitors at such times. The GVH works with accelerated procedures in these cases, making decisions in as little as a few days – making it one of the fastest competition authorities among EU countries.

Competition protection with artificial intelligence

According to Rigó, the GVH is also using new tools, such as artificial intelligence, which helps detect prohibited cooperation – such as cartels. There are currently 19 such investigations underway, eight were initiated last year and three were closed. The competition authority is already routinely examining one in seven public procurements to filter out competition-distorting practices.

He cited the road-painting companies’ cartel as an example, where the companies divided the market among themselves and raised their bid prices by 10%. The GVH’s goal is not to make companies incompetent, he emphasized, but to restore the competitive situation. During the procedures, companies can cooperate and, in fact, they can obtain a significant fine reduction or exemption by applying for leniency.

Tech giants in the crosshairs

The GVH has initiated proceedings against several large tech companies, including Temu, Microsoft, Google, Apple, Viber and TikTok. The aim is not necessarily to punish, but to enforce so-called commitments. For example, TikTok’s 20% advertising limit or Google’s commitment to explain the regulations with easy-to-understand videos. According to the GVH president, the aim is for these companies to “behave fairly” in the European market.

Featured case: the Bige group

The proceedings against companies linked to László Bige are still ongoing. According to the GVH, between 2009 and 2016, 11 companies – including six Bige interests – engaged in cartel-like behavior and sold nitrogen fertilizer at higher prices. The court partially upheld the administrative decision, but ordered a recalculation of the fine amount. “No one won or lost – the case is still ongoing,” Rigó said.

Margin freeze and sector investigations: focus on milk and eggs

The GVH has launched accelerated investigations in the milk and egg sectors to map out the pricing chains. After the price freeze was introduced, there was a product for which the price dropped by 60% – the GVH is now investigating who applied such prices and why. The aim is to determine whether the actors in the value chain worked with a fair profit margin. The investigations will be concluded within a maximum of 90 days and will also shed light on “why eggs are as expensive as they are”.