The Hungarian Competition Authority (GVH) has concluded its investigation into City Taxi, determining that the company misled consumers with its advertising practices related to 'price guarantees' and exclusivity claims. The GVH has issued a warning to businesses to exercise caution in their advertising messages.

The investigation, initiated in spring 2024, revealed that City Taxi likely deceived consumers on multiple fronts through its commercial communications. The GVH's findings indicated that between January 10 and February 26, 2024, City Taxi violated the prohibition of unfair commercial practices.

One significant issue was the use of the term 'Hungarian,' which created the false impression that City Taxi was the only Hungarian company operating in the Budapest taxi market. Additionally, the company suggested that its 'price guarantee' was unique and voluntarily offered, while compliance with pricing regulations is actually a legal requirement.

City Taxi cooperated with the GVH during the investigation and voluntarily ceased its misleading practices after the proceedings began. Taking these factors into account, the GVH imposed a fine of 2.1 million HUF on the company.

The GVH has urged businesses to be diligent in developing their commercial practices, particularly in crafting advertising messages. Companies must substantiate claims of market leadership and exclusivity against all competitors throughout the duration of their messaging.

Furthermore, the GVH advises companies to familiarize themselves with its previous decisions regarding similar practices, especially if they pertain to the same market. A comparable violation was identified about ten years ago involving another player in the Budapest taxi market.