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Hungarian Competition Authority Fines Facebook Ireland for Misleading Users

Hungarian Competition Authority Fines Facebook Ireland for Misleading Users

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According to the press release issued on 6 December 2019, the Hungarian Competition Authority (GVH) imposed a fine of HUF 1.2 billion (EUR 3.6 million) on Facebook for misleading users by claiming its services were free.

GVH found that Facebook Ireland Ltd. had breached competition law when it advertised its services as being free of charge on its home page and Help Centre. GVH stated that users did not have to pay a fee for using the service, however, Facebook benefited economically from the user’s activity and data. According to GVH, the user data Facebook gathered enabled it to post targeted ads for users. In addition, users were not aware of the amount and value of data handed over to Facebook while using the service.

GVH imposed a fine amounting to a total of EUR 3.6 million, which is the highest fine that the authority has ever imposed in a consumer protection case.

It is unclear yet whether Facebook had amended the misleading statements since then.

By Adrienn Megyesi, Attorney at Law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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