{"id":4357,"date":"2023-05-17T16:55:41","date_gmt":"2023-05-17T14:55:41","guid":{"rendered":"https:\/\/blogs.dlapiper.com\/advocatus\/?p=4357"},"modified":"2025-06-17T16:15:36","modified_gmt":"2025-06-17T14:15:36","slug":"can-the-hungarian-public-prosecutor-challenge-foreign-companies-general-terms-of-business-in-hungarian-courts","status":"publish","type":"post","link":"https:\/\/blogs.dlapiper.com\/advocatus\/2023\/05\/can-the-hungarian-public-prosecutor-challenge-foreign-companies-general-terms-of-business-in-hungarian-courts\/","title":{"rendered":"Can the Hungarian public prosecutor challenge foreign companies\u2019 general terms of business in Hungarian courts? The Budapest Court of Appeal thinks so"},"content":{"rendered":"\t\t
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In a recent case (under No. BDT2023.4623), the Budapest Court of Appeal made an important decision on the issue of jurisdiction. The case related to challenging the fairness (and the validity) of general terms of business (GTCs) of EU-based foreign service providers engaging in business with consumers in Hungary.<\/b><\/h5>\n

The decision is significant for all such providers as the Budapest Court of Appeal unequivocally established that Hungarian courts do have jurisdiction to entertain and adjudicate on such challenges<\/b>.<\/p>\n

The case concerned a claim by the public prosecutor, which has the right, under Hungarian law, to challenge unfair GTCs applicable to consumers and to ask the Hungarian courts to establish whether clauses or provisions are invalid.<\/p>\n

The prosecutor initiating cases like this has proved to be successful against Hungarian operators in several industries, most recently banking, insurance, real estate and aviation. But past cases all concerned businesses (ie companies) established in Hungary as defendants, where the issue of jurisdiction didn\u2019t come up.<\/p>\n

To our knowledge, this case is the first where the prosecutor has decided to challenge GTC provisions applied by an operator established in another EU country, meaning a foreign defendant appeared in the case<\/b>.<\/p>\n

The issue of jurisdiction quickly became a key point of contention. Under the applicable EU law rules (Regulation 1215\/2012\/EU, the Brussels 1a Regulation), a defendant should be sued in the country where it is established. But the Brussels 1a Regulation also recognizes that in matters relating to torts, a defendant can also be sued in the courts where the harmful event occurred or may occur<\/b>.<\/p>\n

The defendant argued that the prosecutor’s challenge to establish the unfairness of a GTC provision cannot be a \u201cmatter relating to a tort\u201d since such challenges are merely aimed at establishing the invalidity of the contractual clause in the GTC, but have nothing to do with torts or damages, which are a separate matter.<\/p>\n

The Budapest Court of Appeal disagreed. It relied on the European Court’s judgment in the C-191\/15 Verein f\u00fcr Konsumenteninformation case, in which an Austrian consumer protection association sued a Luxembourg company. In that case, the European Court established Austrian jurisdiction. The court held that in matters of consumer protection, a preventive action (eg to prohibit the use of an unfair contractual clause) can be a \u201cmatter relating to a tort<\/b>\u201d under the Brussels 1a Regulation (when read together with the applicable EU rules).<\/p>\n

The European Court found that under these rules, a company that directs its activities to the Member State where a consumer is domiciled can be sued in that Member State. The Budapest Court of Appeal also confirmed the existence of Hungarian jurisdiction for these types of claims against EU-based foreign defendants in Hungary.<\/b><\/p>\n

This might not be the Hungarian courts\u2019 final word on the matter. The case was remitted to the first instance on substance, where it could be further escalated to the Hungarian Supreme Court. But we can expect the Hungarian public prosecutor’s office to challenge further GTCs employed by companies established in the EU with a significant Hungarian consumer base. The prime targets are likely to be online service providers (including webshops, online platforms and social media companies).<\/b><\/p>\n

Companies should review their GTCs directed to Hungarian consumers to avoid allegations of unfairness.<\/b> In addition, they should also take steps to prepare for a possible approach by the prosecutor.<\/b> By taking preparatory steps, companies can avoid costly and protracted litigation and they can streamline any possible litigation to involve only the points where a successful defense can be reasonably expected on the merits.<\/p>\n

[Disclosure: DLA Piper Hungary represented the defendant in the case]<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Authors: Zolt\u00e1n Marosi, Viktor Radics<\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\tZolt\u00e1n Marosi \t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tPartner,

Co-Head of Competition and Antitrust\n\n\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t

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\n\t\t\t\t\t\t\tZolt\u00e1n Marosi\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tZolt\u00e1n is the Co-Head of the Competition and Antitrust practice group at DLA Piper Hungary. His main area of expertise lies in Hungarian and EU antitrust law, consumer protection law and administrative litigation. He has published numerous articles and book excerpts in the fields of competition law, commercial law and European Union law. Zolt\u00e1n is currently a lecturer of EU law and EU competition law at ELTE School of Law and the Bib\u00f3 Istv\u00e1n College for Advanced Studies and serves as a member of the Hungarian committee of bar examiners.\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tSend an e-mail\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\"Viktor_Radics\"\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\tViktor Radics \t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\tPartner,

Head of Dispute Resolution\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t

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\n\t\t\t\t\t\t\tViktor Radics\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tViktor is the Head of Dispute Resolution at DLA Piper Hungary. As a dispute lawyer, he has been active in domestic and cross-border litigation, domestic and international commercial arbitrations for 15 years. He has robust experience in infrastructure, energy, finance and capital markets, gambling, pharma and real estate disputes whether contractual, product liability or corporate. He is recognised as recommended lawyer in WWL: Global Leader - Gaming 2022 Ranking.\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\tSend an e-mail\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Megjelent a DLA Piper Hungary Hazai Ingatlanpiaci K\u00f6rk\u00e9p 2026, amelyben szak\u00e9rt\u0151ink \u00f6sszefoglalt\u00e1k az elm\u00falt \u00e9v meghat\u00e1roz\u00f3 ingatlanpiaci trendjeit \u00e9s a piac j\u00f6v\u0151beni kil\u00e1t\u00e1sait. Az idei kiad\u00e1s fontos m\u00e9rf\u00f6ldk\u00f6vet jelent: els\u0151 alkalommal eg\u00e9sz\u00edtett\u00fck ki elemz\u00e9s\u00fcnket \u00fcgyfeleink \u00e9s a piac vezet\u0151 szerepl\u0151inek els\u0151 k\u00e9zb\u0151l sz\u00e1rmaz\u00f3 tapasztalataival \u00e9s v\u00e1rakoz\u00e1saival, amelyeket saj\u00e1t jogi elemz\u00e9s\u00fcnkkel \u00f6tv\u00f6zt\u00fcnk. Ennek k\u00f6sz\u00f6nhet\u0151en riportunk \u00e1tfog\u00f3bb \u00e9s teljesebb k\u00e9pet ny\u00fajt a magyarorsz\u00e1gi ingatlanpiac aktu\u00e1lis helyzet\u00e9r\u0151l.<\/p>\n\t\t<\/div>\n\t\t\n\t\t\n\t\t\tTov\u00e1bb >>\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\n\t\t\t\tInterview with D\u00e1vid K\u0151hegyi published on B\u00f8rsen\t\t\t<\/a>\n\t\t<\/h4>\n\t\t\t\t
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Read the latest interview with D\u00e1vid K\u0151hegyi published on\u00a0B\u00f8rsen, one of Denmark\u2019s leading and most influential business and financial newspapers. Please note that the text<\/p>\n\t\t<\/div>\n\t\t\n\t\t\n\t\t\tTov\u00e1bb >>\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\n\t\t\t\t\u00c1trendez\u0151d\u0151 er\u0151viszonyok a z\u00f6ld energia \u00e1tmenetben: merre tart az M&A\u2011piac \u00e9s a r\u00e9gi\u00f3 befektet\u00e9si t\u00e9rk\u00e9pe?\t\t\t<\/a>\n\t\t<\/h4>\n\t\t\t\t
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A DLA Piper 2026-os energia \u00e1tmeneti M&A jelent\u00e9se (Energy Transition M&A Report 2026*) szerint a glob\u00e1lis tranzakci\u00f3s dinamika egyszerre mutatott visszaes\u00e9st \u00e9s er\u0151s\u00f6d\u00e9st.<\/p>\n\t\t<\/div>\n\t\t\n\t\t\n\t\t\tTov\u00e1bb >>\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t\t\n\t\t\tDLA Piper\t\t<\/span>\n\t\t\t\t\n\t\t\t2026-03-13\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

In a recent case (under No. BDT2023.4623), the Budapest Court of Appeal made an important decision on the issue of jurisdiction. The article is written by Zolt\u00e1n Marosi, Partner, Co-Head of Competition\/Antitrust and Viktor Radics, Partner, Head of Dispute Resolution.<\/p>\n","protected":false},"author":1,"featured_media":4362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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