Hungarian hair care product distributor fined
Following a decision by the Hungarian Competition Authority, the company Hair-Line must pay a significant fine. The company distributes professional Alfaparf hair care products in Hungary, but an investigation by the authority revealed irregularities in their operations.
The authority determined that the business restricted market competition by mandating the prices at which resellers could sell their products. Under Hungarian law, manufacturers and distributors cannot set mandatory retail prices, as stores have the right to decide their own prices independently.
As a result of the investigation, Hair-Line was fined a total of 68.5 million Hungarian forints. The purpose of the decision is to ensure fair market competition and prevent distributors from directly influencing consumer prices in the market.
This case once again highlights that the Hungarian competition authority strictly monitors commercial agreements. Such practices prevent customers from accessing products at lower prices, as fixed pricing eliminates price competition between stores.