GVH introducing letter of formal notice
2025. May 14.The Hungarian Competition Authority (GVH) introduced the letter of formal notice, as a new legal instrument. A letter of formal notice is a tool used to prevent unfair market practices and competition restricting behavior, encouraging companies to voluntarily comply with legal requirements without initiating formal competition proceedings. GVH sends a letter of formal notice when it identifies a potentially unlawful practice and wishes to give the company an opportunity to review and correct its behavior. It is important to note that the letter of formal notice does not constitute a formal finding of infringement but serves as a warning that the GVH has identified concerns and may take further action if necessary. Responding to the letter of formal notice is not mandatory, but the GVH may appreciate a company’s willingness to cooperate, while failing to respond could be viewed as an aggravating factor in future proceedings. Each year, GVH publishes anonymized statistics on the letters of formal notice issued, aiming to promote lawful market behavior amongst all market players.