The Hungarian Competition Authority (GVH) has concluded a rapid sectoral investigation revealing a reduction in the proportion of single-bid public procurements in Hungary between 2021 and 2023. This decline is particularly noted in the medical imaging diagnostics market, reflecting the government's commitment to enhance competition in public procurement as promised to the European Commission.

As part of its mandate, the GVH focuses on public procurement procedures, aiming to uncover, dismantle, and prevent procurement cartels to ensure the transparent use of public funds. The absence of competition in single-bid procurements allows bidders to set prices freely, which can undermine the efficiency of budgetary resource utilization and harm public interest.

In early 2023, the Hungarian government adopted an action plan aimed at increasing competition in public procurements from 2023 to 2026, with a significant goal of reducing the rate of single-bid procurements. The government has tasked the GVH with conducting sectoral investigations to identify the causes of single-bid procurements.

The GVH identified three public procurement markets for investigation, starting with the medical diagnostic equipment market on September 24, 2024, focusing on imaging technologies such as MRI, CT, ultrasound, and radiological equipment.

During the investigation, the GVH conducted unannounced on-site inspections at major players in the domestic market for imaging diagnostic devices and required numerous companies involved in the manufacturing or distribution of these devices to provide written data. The GVH also consulted with the Public Procurement Authority and the National Development Center to assess relevant international practices.

The findings indicate that measures aimed at reducing single-bid procurements have positively impacted the medical imaging diagnostics market, leading to a decrease in single-bid procurements and the establishment of practices that allow for the declaration of single-bid procurements as unsuccessful.

The GVH has made expert recommendations to further reduce the number of single-bid procurements, suggesting that contracting authorities allow partial bids for imaging diagnostic devices in package requests and involve market players in a transparent manner during the pre-procurement phase.

Additionally, the GVH recommends that oversight bodies maintain strict scrutiny over the justification and legal compliance of package requests involving imaging diagnostic devices and ensure adherence to pre-market consultation obligations.

The draft report based on the rapid sectoral investigation has been made available for public consultation on the GVH website, allowing market participants to submit written comments until January 19, 2025. Following this deadline, the GVH will publish a report summarizing the investigation's results and any received comments.