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09.10.2024 | 🇭🇺 Hungarian competition authority
A Budapest Metropolitan Court rejected Nitrogénművek Zrt.'s lawsuit regarding severe infringements, partially upholding it. The Hungarian Competition Authority (GVH) is appealing to the Curia, maintaining the record-breaking fine of 11 billion HUF imposed on the Nitrogénművek group for anti-competitive practices in the domestic fertilizer market.
In 2021, the GVH investigation revealed that Nitrogénművek and its subsidiaries unlawfully set final consumer prices and restricted resale to certain buyers, imposing annual minimum purchase quantities and exclusivity to limit foreign sourcing.
Out of 11 implicated local companies, two were found innocent, while nine admitted to the violations. The GVH imposed a total fine of 14.1 billion HUF on Nitrogénművek's six entities, Hőgyész Agrokémiai Kft., and Cargill Magyarország Zrt.
The Budapest Metropolitan Court partially upheld Nitrogénművek's claim on October 3, reinforcing the original decision on price fixing and market allocation violations. Despite this, the GVH is appealing to the Curia, standing by its initial ruling and maintaining the fine in the central budget until the case concludes.
Cartels aiming at price fixing and market allocation are considered severe anti-competitive practices with significant societal harm potential. The fertilizer cartel's actions led to higher prices for Hungarian farmers, potentially affecting consumer costs and the food market.
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