The Hungarian Parliament maintains automatic debarment from public procurement tenders as a general sanction for competition violations but allows Government to exempt certain tenders (Hungarian Public Procurement Act)

1. Overview In Hungary, since 1 November 2015 a fine imposed by any Competition Authority for anticompetitive agreements results in automatic exclusion from public procurement tenders. The recent introduction of automatic debarment was a major change compared to the previous rules, which merely allowed contracting authorities to disqualify bidders on a discretionary basis in case of hard-core cartel violations. An amendment of the PPA that entered into force on 15 June 2016 seeks to remedy an unwanted side-effect of the strict automatic debarment regime, which eliminated in some industries (such as in the banking sector) effective competition on Government tenders, as most market players became disqualified to participate. To remedy this situation, the amendment maintains the

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Márton Horányi, The Hungarian Parliament maintains automatic debarment from public procurement tenders as a general sanction for competition violations but allows Government to exempt certain tenders (Hungarian Public Procurement Act), 15 June 2016, e-Competitions Bulletin June 2016, Art. N° 80056

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