Introduction: The GVH’s Processing Deadlines and Sanctions
The activities and procedures of the Competition Authority (GVH) are regulated by competition law, which defines the legal status of the authority, its procedures, and processing deadlines. These deadlines determine the time within which the GVH must complete various procedures: for example, cases concerning anti-competitive practices must be concluded within six months, while the review of mergers must be completed in either four or six months. If the GVH delays its work, this could have legal consequences.
Extension of the GVH’s Processing Deadlines: When Is It Possible?
It is important to emphasize that the President of the GVH or the President of the Competition Council can extend the processing deadline in justified cases. However, three criteria must be met – it must be reasonable, realistic, and objectively justified. If the GVH delays its actions, this may influence decisions regarding sanctions.
What Happens If the GVH Exceeds the Deadline?
But what happens if the GVH exceeds the GVH’s Processing Deadlines? How does this affect the content of the decision issued by the authority regarding an established violation, such as the imposed fine? In this matter, the Constitutional Court and the Supreme Court have recently made several important rulings.
Opinions of the Courts and the Constitutional Court
According to case law, compliance with processing deadlines is particularly important, especially when the authority imposes sanctions, such as fines. The courts and the Constitutional Court emphasize that compliance with laws, particularly the observance of deadlines, serves legal certainty and thus ensures the right to a fair administrative procedure. The Constitutional Court stresses that the consequences of missing legally prescribed deadlines should not be borne by the client, as the legislator did not set these deadlines for their benefit.
Impact of Recent Court Rulings on Fines
Examples from recent court rulings show the consequences of missing GVH’s Processing Deadlines. In one case, the court annulled a fine imposed by the GVH due to a five-month delay, while in another case, a nine-day delay by the NAV only led to a reduction in the tax penalty. The GVH does not always delay intentionally, but the legal consequences remain.
Legal Consequences of Exceeding the Deadline
According to the latest case law, it is therefore likely that the court will reduce or even completely annul a fine if the GVH exceeds the processing deadline and subsequently imposes a fine. This applies even if the GVH had the option to extend the deadline but failed to do so. If the GVH delays its work, this can have significant practical consequences.
Summary: The Importance of Compliance with Deadlines and the Role of Legal Certainty
If the GVH exceeds the GVH’s Processing Deadlines, it may be legally justified for the court to reduce or even annul the imposed fine. Strict compliance with deadlines thus not only serves legal certainty but also ensures a fair application of competition rules.
Further Information and Support
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Dr. Katona Géza, LL.M. (Attorney at Law)
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Katona és Társai Ügyvédi Társulás
(Katona & Partner Law Firm / Attorneys’ Association)
H-106 Budapest, Tündérfürt utca 4.
Tel.: +36 1 225 25 30
Mobile: +36 70 344 0388
Fax: +36 1 700 27 57
g.katona@katonalaw.com