Government Considers Intervention in Telecommunication and Internet Service Prices
Rising fees prompt potential regulatory actions in banking and telecommunications sectors as economy monitors key price changes.
The Hungarian government is closely monitoring price changes in critical sectors, including telecommunications and internet services, in response to substantial increases over the past year.
The Ministry of Economic Development stated that it is prepared to intervene in these areas to ensure fair pricing for consumers, especially following noticeable hikes in recent months.
Minister of Economic Development, Márton Nagy, has previously called attention to the high fees associated with banking services, asserting that the increases are unwarranted.
In comments made via a Facebook video, Nagy pointed out that banking service fees have risen significantly, with claims that monthly account fees increased by 13%, cash withdrawal fees by 15%, and current account management fees by 26%.
Meanwhile, the annual fees for bank cards saw a more modest increase of 6%.
In light of these developments, inquiries into potential measures to curb rising costs in service sectors were directed at the Ministry.
The ministry outlined its initial steps, highlighting requests for voluntary price restrictions from banks and the proposal of specialized account packages aimed at pensioners and families.
These initial offers were deemed unsatisfactory, prompting continued negotiations.
On the subject of price caps, the government noted that price margin reductions have been introduced in the food retail sector to prevent unjustified price increases.
Regulatory checks are set to extend beyond margins to include obligations regarding the proportion of private label products and stock maintenance.
Compliance with these margin reduction measures will be continuously monitored by government offices operating under the auspices of the National Consumer Protection Authority (NKFH).
These inspections will affect retailers categorized under the Unified Industry Classification System (TEÁOR) designation '47.11 – Mixed Retail Trade of Food Products' and those with net revenues exceeding 1 billion HUF in 2023. Both traditional and online retailers are subjected to these regulations.
Should retail chains attempt to circumvent these rules, the government has indicated readiness to extend margin restrictions to additional food categories and reinstate regulated pricing if necessary.
Ongoing discussions with suppliers are part of the government's strategy, urging them to refrain from unjustified price increases.
The Ministry of Economic Development stated that it is prepared to intervene in these areas to ensure fair pricing for consumers, especially following noticeable hikes in recent months.
Minister of Economic Development, Márton Nagy, has previously called attention to the high fees associated with banking services, asserting that the increases are unwarranted.
In comments made via a Facebook video, Nagy pointed out that banking service fees have risen significantly, with claims that monthly account fees increased by 13%, cash withdrawal fees by 15%, and current account management fees by 26%.
Meanwhile, the annual fees for bank cards saw a more modest increase of 6%.
In light of these developments, inquiries into potential measures to curb rising costs in service sectors were directed at the Ministry.
The ministry outlined its initial steps, highlighting requests for voluntary price restrictions from banks and the proposal of specialized account packages aimed at pensioners and families.
These initial offers were deemed unsatisfactory, prompting continued negotiations.
On the subject of price caps, the government noted that price margin reductions have been introduced in the food retail sector to prevent unjustified price increases.
Regulatory checks are set to extend beyond margins to include obligations regarding the proportion of private label products and stock maintenance.
Compliance with these margin reduction measures will be continuously monitored by government offices operating under the auspices of the National Consumer Protection Authority (NKFH).
These inspections will affect retailers categorized under the Unified Industry Classification System (TEÁOR) designation '47.11 – Mixed Retail Trade of Food Products' and those with net revenues exceeding 1 billion HUF in 2023. Both traditional and online retailers are subjected to these regulations.
Should retail chains attempt to circumvent these rules, the government has indicated readiness to extend margin restrictions to additional food categories and reinstate regulated pricing if necessary.
Ongoing discussions with suppliers are part of the government's strategy, urging them to refrain from unjustified price increases.
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