The authority will pay particular attention to investigating the market behavior of large technology companies.Continue reading
The Hungarian Competition Authority (GVH) is pursuing several notifications against the commercial practices of Chinese online marketplace Temu, reports Magyar Nemzet. The authority is currently investigating the allegations made in the notifications and collecting detailed data. Once the information has been evaluated, it will, if warranted, open competition proceedings.
In notification proceedings, the GVH examines whether the conditions for initiating competition proceedings are met; in other words, whether the notified undertaking is likely to have engaged in conduct that falls within the authority’s competence, and whether it is likely to have infringed the prohibition of unfair commercial practices. The GVH also provides detailed information on its website on the notification and complaint procedures, which may give some ideas to those who may have also identified problems with the service provided by the Chinese online trading company.
As it is well known, the authorities in Hungary are “pointing fingers” at Temu, because on the one hand, its aggressive commercial and pricing policy is driving the market down, and on the other hand, the principle of large numbers means that an extremely high number of orders, whether fulfilled or not, are the subject of some kind of consumer complaint.
The company has flooded the European and U.S. online markets in recent months, with local retailers complaining that they cannot keep up with the company.
The Hungarian Competition Authority opens competition proceedings in consumer protection cases where a company is or has been engaged in a commercial practice that is likely to infringe the competition rules and where there is a substantial impact on competition, for example where the activity under investigation is extensive or affects a large number of consumers in a given market.
The GVH pays particular attention to investigating the market conduct of large technology companies and online platforms that affect the interests and market position of a significant number of consumers and businesses. In recent years, the GVH has imposed competition remedies on Google and PayPal, among others, and has imposed significant competition fines on Apple and Booking.com in Hungary.
Via Magyar Nemzet; Featured image via Pexels