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Lakatos, Koves and Partners Successful for Facebook Before Supreme Court in Hungary

Lakatos, Koves and Partners Successful for Facebook Before Supreme Court in Hungary

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Lakatos, Koves and Partners has successfully represented Facebook Ireland before the Hungarian Supreme Court Kuria.

According to LKT, “mid-November the Hungarian Competition Authority published on its website Kuria’s long-awaited final judgment which ruled that Facebook’s earlier statement that its service is 'Free and always will be' was lawful. The Kuria’s judgment was preceded by the Budapest Metropolitan Court’s first instance judgment, which vacated the HCA's decision issued in December 2019. In that decision, the HCA ruled that the free statement misled consumers, essentially because Facebook monetizes users’ personal data to serve them targeted advertisements. If that’s the case, the statement that the Facebook service is 'free' is not valid and misleading, as it distracts consumers’ attention from what happens with their data. The HCA imposed a record fine at the time, amounting to EUR 3.4 million.”

According to the firm, “the HCA’s case was important because it raised specific legal questions around price communication in zero-priced business models operating based on consumer data. The Kuria’s ruling is equally an important addition to what 'price' and 'free' mean in this context. The Kuria held that any type of consideration can be caught as 'price' which is a disadvantage for the consumer, provided firstly that it is not an obvious feature imminent in the nature of the product, also that it is direct and it is significant, i.e. capable of impacting consumer’s decision. With respect to the statement that Facebook’s service is free, these conditions were not met. The Kuria held that in a digital zero-priced service, the ads viewed by consumers are targeted, does not represent a disadvantage for consumers, compared to what is traditionally imminent in zero-priced services, i.e. viewing ads.”

LKT’s team was led by Partner Eszter Ritter.

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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