Baker McKenzie has advised Deutsche Telekom IT Solutions on its headquarters relocation to the Hungarian Telekom building in Budapest. DLA Piper advised developer WING on the lease.

Some significant amendments to the Hungarian Competition Act have entered into force. The Hungarian Competition Authority (HCA) has been very active recently in various sectors. This summary briefly describes the most important changes. Some of the changes require an update to the compliance materials for Hungary.

In a recent decision, the Hungarian Supreme Court had to decide in case, where the amount called by the beneficiary of the guarantee was more than the actual costs incurred. Does call on the bank guarantee shall be proportionate to the costs actually incurred? Shall the beneficiary settle accounts with the debtor after the bank guarantee has been called?

The rules on the order for payment order procedure have changed significantly as of 1 October 2023. Many of the changes are related to the simplification and digitalisation of the procedure.

WKB Lawyers, working alongside Norway-based Advokatfirmaet Wiersholm, has advised Orkla on the sale of a 40% stake in Orkla Food Ingredients to Rhone. Norway's Thommessen reportedly advised Rhone.

Attorney at Law Gyorgy Baksay-Nagy has been appointed as the Head of the Intellectual Property practice group at OPL Gunnercooke.

Former MVM Deputy CEO Balazs Tomaj has joined Kinstellar in Budapest as Senior Counsel.

The draft of the new Hungarian Construction Act was recently published for public consultation. Although the act only lays down the general rules, and details will be laid down in other regulations that are not yet known, several new features can already be seen in the draft. In our short article we summarise a few important changes.

When we consider the validity of a contract on the basis of the parties' will, it is usually the will at the time of the conclusion of the contract that is relevant. In a recent decision, however, the Supreme Court of Hungary has pointed out that in the case of a long-lasting legal relationship, such as an employment relationship, the parties' actions after the conclusion of the contract in order to perform it must also be taken into account when determining the contractual intention.

Presently, a legislative proposal has been placed on the agenda, focusing on measures aimed at streamlining governmental operations. This comprehensive proposal encompasses various modifications, one of which pertains to an amendment to the personal income tax act (“PIT Act”).

DLA Piper has advised Romanian grain and oilseed trader East Grain on the sale of a majority stake in the company and its Hungarian subsidiary to the Czech Republic's Agrofert group. Schoenherr advised the buyer.

A package called “Provisions on further simplification of the functioning of the state” has been discussed at the Hungarian Parliament in the autumn of 2023.

The National Water Resources Protection Map, required for the licensing of domestic and agricultural wells under the amendment to the Water Management Act, has been completed and is available on the website of National Water Directorate (in Hungarian: “Országos Vízügyi Főigazgatóság”). This Protection Map will play a central role in the future licensing of domestic groundwater wells.

In July 2023 the European Court of Justice (ECJ) gave its judgment in case no. C-106-22 (Xella Judgment). The case was referred by the Fővárosi Törvényszék (Budapest High Court, Hungary) for preliminary ruling on the interpretation of Article 65(1)(b) TFEU in conjunction with recitals 4 and 6 of Regulation (EU) 2019/452 (EU FDI Regulation) and Article 4(2) TEU.

The company name is an important asset of the company and also helps the customers when choosing between products or services. Therefore, a new company can only be founded with a name that is sufficiently different from existing companies. What are the legal options for a company if, despite the above, a new company with a very similar name has been registered?

On 1 October 2023, the amendments of the new Land Registry Act entered into force and as a result, the Act will enter into force only on 1 October 2024, instead of the date of 1 February 2024 already postponed from the initial date of 1 February 2023.

On 5 October 2023, the Government adopted a new decision according to which it will review the current regulation on the entry, residence and employment of third-country nationals in Hungary with the aim of tightening the statutory provisions in this respect.

Lakatos Koves & Partners has advised Bristol-based industrial thread manufacturer Coats on the sale of its thread factory in Ujpest, Hungary.