GVH penalizes Magyar Telekom for false advertising

Telco

Hungary's Competition Office (GVH) on Friday said it penalized Magyar Telekom for falsely advertising "unlimited" mobile data for certain applications in some of its packages, according to a report by state news wire MTI.

GVH found that subscribers who opted for the packages were, in fact, charged for some functions within the applications, such as VOIP calls or playing videos. The telco company's failure to make this clear to consumers may have influenced their habits, promoting "intensive" use of the applications, as well as affecting the price-to-value ratio of the packages, the watchdog said.

The competition authority instructed Magyar Telekom to cease the advertising practice and fined it HUF 310 million. It also ordered the telco to provide 4GB of mobile data, free of charge, to all subscribers to the packages who used up their data at least once since the start of 2017.

In response to an inquiry by MTI, Magyar Telekom said it will decide whether to appeal GVH's decision in court after studying the resolution. It said it will inform the subscribers concerned about the 4GB of additional mobile data offered as compensation.

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