Parliament approves amendment to Competition Act
Parliament approved the amendment to the Competition Act, according to which in the case of placements of majority state-owned capital funds, the parties do not have to notify the merger to the Hungarian Competition Authority, according to novekedes.hu.
The purpose of such public financial capital investments is to facilitate the marketing of a product or service, particularly for startups whose products or services are still in the development stage or have a marginal market presence.
Because of that, competition is not likely to be a concern. Even though the GVH assesses simple mergers that do not raise competition concerns within an average of four days, the legal cost and time required to prepare a merger notification to the GVH was in many cases a disproportionate burden on investors compared to the size of the investment, said Balázs Csaba Rigó, president of the National Competition Authority.
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