The European Union has ordered Hungary to roll back rights given to Nemzeti Mobilfizetesi to operate the national mobile payment system for some public services.
Contrary to its rule, the exceptionality granted to state-owned national mobile payment company Nemzeti Mobilfizetesi unnecessarily controls access to the market, EU observed in its order.
Go deeper with GlobalData
Accusing the country for violating EU’s rule of freedom of establishment and free provision of services, the EC has threatened legal action, if it fails to comply with its order.
The EU said that all service providers must use this intermediation platform when offering payments using a mobile for some local authority and government services.
"This new exclusive right unnecessarily and significantly restricts access to a market that was previously fully open to competition, thereby harming existing investors and dissuading future investors with no appropriate justification," the European Commission said in a statement.
The EU has already sent a so-called reasoned opinion to Hungary on the matter, which is the second stage of the infringement procedure.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIf the Hungarian authorities failed to submit their response within two months of deadline, the case will be forwarded to the EU Court of Justice.
