On 16 December 2020, the Hungarian Competition Authority (HCA) announced the launch of a market analysis to explore how the “data assets” of online retailers are created and the effects of data collection on the competition between online stores.
This sector review will also examine consumer awareness of data collection and its role in consumer decision-making with a focus on the online retail markets of electronic devices, food and clothing. Market players will provide information and express views on a voluntary basis.
According to the HCA, the review is being conducted in response to the observation that the fear of the epidemic and the recent curfew introduced by the Hungarian government have significantly increased the role of online shopping, and prompted consumers to explore new solutions from the comfort and safety of home.
Specifically, the HCA states it wants to measure this reaction since the adoption of online shopping in these uncertain times could transform consumer habits over the long run, increasing the role of online commerce. The HCA's market analysis will therefore seek to assess the operation of the sector and typical consumer behaviour.
In its analysis, the HCA plans to examine the following:
- the type of consumer data online retailers are collecting;
- how consumer data are used and for what purpose;
- the level of consumer awareness of data collection;
- the competitive advantage of the data collected; and
In addition to the voluntary responses of market players, the market analysis will be based on publicly available information and market research. According to the timeline set for the analysis, the HCA will send questionnaires to market players until the end of January 2021. At the end of the process, scheduled for autumn 2021, the HCA will publish a study on its website summarising its findings.
This market analysis into online shopping is another example of the HCA's interest in scrutinising the data collection practices of online service providers. (Our competition law experts discuss this trend here).
With our experience in competition and data protection law and our involvement in past market analyses and inquiries, CMS Hungary is able to assist you in communicating and cooperating with the HCA in the review.
For more information on the HCA, this market analysis and the Hungarian retail sector, contact your CMS partner or local CMS experts.
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