Amendments to Hungary’s Public Procurement Framework: New Criteria for Determining the Liability of Economic Operators
2026. July 28.Hungary has adopted Act XVIII of 2026 on the Amendment of Certain Laws Necessary to Access European Union Funds, introducing significant amendments to Act CXLIII of 2015 on Public Procurement (the “Public Procurement Act” or “PPA”). The changes, which entered into force on 29 June 2026, seek to strengthen the integrity of the public procurement system and align the Hungarian framework with broader EU expectations regarding the protection of public funds. One of the most significant aspects of the amendments is that the PPA now expressly defines the criteria to be taken into account when determining the liability of economic operators for public procurement infringements.
Liability of economic operators and the revised fining framework
Under the amended PPA, the Public Procurement Disputes Board (“PPDB”) is now expressly required to assess the conduct of an economic operator when determining whether liability should be established and a fine imposed. Previously, the legislation did not explicitly regulate the circumstances in which an economic operator could be sanctioned for breaches of public procurement rules, while also not excluding such a possibility.
The amendment codifies an approach based on the principle of proportionality. In addition to assessing the seriousness of the infringement, the PPDB must consider the role of the economic operator, the obligations applicable to it, and whether the operator could reasonably have been expected to identify the infringement and act accordingly. This represents a shift away from a purely objective approach and requires an individual assessment of the operator’s conduct in light of the specific circumstances of the case.
To enhance predictability, the PPDB has also published a notice setting out the principles governing its fining practice together with indicative fine ranges for certain infringements. Although these guidelines are not legally binding, they provide market participants with greater transparency regarding the authority’s enforcement practice.
Further compliance and integrity measures
Beyond the revised fining regime, the legislative package introduces a number of measures aimed at reinforcing transparency, public scrutiny and anti-corruption safeguards within the public procurement system. The amendments also strengthen the role of the Integrity Authority and extend compliance expectations beyond the procurement procedure itself by allowing contracting authorities to include proportionate anti-corruption obligations linked to the performance of public contracts.
The amendments also strengthen the verification obligations of contracting authorities. To this end, the PPA introduces the concept of a transparent economic operator, requiring contracting authorities to assess not only the formal declarations concerning beneficial ownership but also whether the economic operator’s ownership and control structure can be effectively identified on the basis of the information provided. Contracting authorities are entitled to request additional information during the procurement procedure, while transparency regarding these ownership and control arrangements must also be maintained throughout the performance of the contract. As a result, the compliance expectations introduced by the amendments extend beyond the submission of the tender and continue to apply for the duration of the contractual relationship.
The detailed implementing provisions were introduced by Government Decree No. 105/2026 (VII.1.) on the implementation of certain provisions of the Public Procurement Act.
Summary
The amendments represent an important step towards clarifying the liability of economic operators in Hungarian public procurement law. At the same time, the statutory framework leaves open a number of practical questions regarding the level of due diligence expected from companies before entering into contracts with public entities. As the legislation provides only limited guidance in this respect, the emerging decision-making practice of the PPDB will play a key role in defining the practical scope of these new compliance obligations.