Spar Avoids Fine with Commitments to Boost Local Economy: Hungarian Competition Authority Launches Follow-Up Investigation

In December 2020, the Hungarian Competition Authority (HCA) concluded its investigation into SPAR Magyarország Kereskedelmi Kft (Spar), a prominent retail chain operating in Hungary and other countries. The HCA determined that Spar had abused its significant market power over suppliers, engaging in purchasing practices that violated the Hungarian Trade Act. Specifically, Spar’s bonus system imposed unjustified, unilateral fees on suppliers in exchange for product placement on its store shelves.

Instead of imposing a fine, the HCA accepted Spar’s proposed commitments. Spar committed HUF 1.7 billion to this initiative and promised to create 23 new jobs. The HCA saw this reparation plan, aimed at fostering local economic growth and supporting Hungarian products, as more beneficial to the public interest than a fine.

As part of its commitments, Spar agreed to establish six regional supplier centers to improve market access for Hungarian goods and support local small-scale suppliers. Additionally, the retailer pledged to offer training to suppliers in marketing, warehousing, and logistics, while creating new job opportunities.

The HCA is currently conducting a follow-up investigation to monitor Spar's compliance with these commitments. Should Spar fail to meet its obligations, the HCA reserves the right to impose significant fines on the supermarket chain.