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On 1 December 2025, the majority of Act LXXV of 2025 on the implementation of the European Union Regulation on Artificial Intelligence in Hungary enters into force 31 days after its promulgation on 31 October 2025, with the exception of Section 3(2) and Section 10, which enter into force on 2 August 2026. The Act lays out procedures for carrying out market-surveillance procedures in Hungary where AI systems are placed on the market, put into service, or their outputs are used domestically; covers notification procedures initiated in Hungary; and provides for administrative proceedings to apply Article 99 sanctions of the EU Regulation to providers, deployers, manufacturers, importers and authorised representatives, including third-country actors where outputs are used in Hungary. It empowers the Government to designate an AI notifying authority (Article 28 EU Regulation) and an AI market surveillance authority (Article 70), establishes a single point of contact, lays down special procedural rules, and creates the Hungarian Artificial Intelligence Council to support strategy, guidance and coordination. It also provides for an AI regulatory test environment and assigns certain financial-sector market-surveillance functions to the central bank under Article 74(6).
On 21 October 2025, the National Assembly adopted Bill (T/12632) on the implementation of the European Union Regulation on Artificial Intelligence in Hungary. The Act lays out procedures for carrying out market-surveillance procedures in Hungary where AI systems are placed on the market, put into service, or their outputs are used domestically; covers notification procedures initiated in Hungary; and provides for administrative proceedings to apply Article 99 sanctions of the EU Regulation to providers, deployers, manufacturers, importers and authorised representatives, including third-country actors where outputs are used in Hungary. It empowers the Government to designate an AI notifying authority (Article 28 EU Regulation) and an AI market surveillance authority (Article 70), establishes a single point of contact, lays down special procedural rules, and creates the Hungarian Artificial Intelligence Council to support strategy, guidance and coordination. It also provides for an AI regulatory test environment and assigns certain financial-sector market-surveillance functions to the central bank under Article 74(6). Aside from two specific sections, the Act enters into force 31 days after its official promulgation.
On 14 October 2025, the Competition Authority (GVH) fined Paradox Security Systems Bahamas and Power Security Technology Trading HUF 365.5 million over anti-competitive practices in the security technology sector. The GVH determined that between 2009 and 2019, Paradox Bahamas, Power, and Trioda Security Technology Plc (Trioda) restricted competition by enforcing a passive export ban that prohibited cross-border sales of Paradox products, fixing minimum installer margins amounting to indirect resale price maintenance, and prohibiting the publication of end-user prices online, thereby restricting online sales. Following the annulment of the original 2019 decision by the administrative court, the GVH repeated the proceedings and confirmed the same infringements based on the distribution contracts, seized correspondence, and evidence of market conduct. The Competition Council of the GVH fined Paradox Bahamas HUF 268 million and Power HUF 97.5 million, taking into account Power’s classification as a small and medium-sized enterprise, its cooperation, and its undertaking to implement a mandatory compliance programme.
On 17 September 2025, the Hungarian Competition Authority (GVH) initiated competition supervision proceedings against Duolingo over allegedly unfair commercial practices. The GVH suspects that the company may have misled consumers about the effectiveness of its learning method and made unfounded claims of market leadership, such as the slogan “Duolingo – The best way to learn a language in the world.” The investigation also concerns allegedly misleading claims about learning outcomes, for example, “after 1 month of using Duolingo, 9 out of 10 language learners speak the language confidently”, as well as the lack of clear and timely information on the limits of free use, insufficient availability of its terms of use in Hungarian, and the use of psychological pressure through frequent and unsolicited marketing messages encouraging increased use or paid subscriptions. The GVH stated that around 380’000 people in Hungary use Duolingo daily. It also underlined that the initiation of proceedings does not imply a breach, and that the statutory period for completion is three months, which may be extended twice by up to two months each time.
Last updated: 01/12/2025