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Harmonisation of Hungarian information protection law with GDPR - IT Law, Drafting and reviewing contracts,Discussions in regards of Domain names, Counselling on software- and licensing agreements

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Harmonisation of Hungarian information protection law with GDPR

2018-09-14 | Data Protection

Harmonisation of Hungarian information protection law with GDPR

In the past months, one of the most relevant news and legal topic has been that of data processing. And alas the regulation of data processing in Hungary has arrived to a new milestone on July 17th 2018, when the Hungarian Parliament adopted an amendment of Act 113 of 2011 on the Right of Informational Self-Determination and on the Freedom of Information („Info Act”). The amendment of the Info Act is supposed to implement the rules of the General Data Protection Regulation 2016/679 (April 27th 2016.) of the European Union.

The main purpose of GDPR and the amended Infoact is to provide relevant protection to the data of european citizens, by adopting new acts, rules and regulations regarding data protection. By harmonising the national and European laws, Hungary is fulfilling it’s duties arising from the country’s EU membership.

Before the GDPR came into force, there have not been any laws in Hungary that could thoroughly prepare the legal system for the implementation of the new regulation, but Info Act has been considered one of the strictest as per data processing in Europe. By adopting the new amendment, the Hungarian Parliament aims to solve the uneasiness and uncertainty resulting from the GDPR in force and the lack of proper local legislation to pair with.

Despite all the effort and the legal steps towards an effective data protection regulation, the legal basis of data protection in Hungary is still incomplete and difficult to oversee. Because of these reasons, a more thorough revision of the data protection laws is expected to follow the amendment, with the purpose of a better implementation of European standards. The lack of certainty concerning the legal basis of data protection creates a need for professional legal help regarding data controllers.

We have collected the most important changes in the amended Info Act:

  1. The supervisory authority regarding the compliance with GDPR is the Hungarian Data Protection and Freedom of Information Agency (locally: NAIH), with the exception of courts, over which the NAIH has no authority.

§ If the data controllers or data processors fail to comply with the law, the NAIH may fine the data controller or data processor for an amount of up to 20 million HUF.

  1. The data subject is entitled to bring private actions against the data controllers and data processors for violations. The data subject is entitled to make claims for any damages and also exemplary damages. The data controller or data processor may prove that they comply with the law.
  1. The scope and application of the Infoact has been substantially extended to better comply with GDPR. If the controller’s main establishment or place of business is located in Hungary, or if the processing operations relate to the offering of goods or services to data subjects located in Hungary, the infoact is applicable. The scope of the act is also extended to manual data processing.
  1. According to the new law, mandatory data processing must be settled by an act and no lesser legal source may suffice . The data controller must revise after 3 years and maintain any and all data for atleast 10 years.
  1. The amended Info Act aims to protect the data of deceased as well. The relatives of the deceased have the right to erasure and restriction on processing within five years of death. The age of consent applicable to a child’s consent regarding information society services is 16 years.
  1. Criminal records may only be processed with the data subject’s explicit consent or if the data processing is necessary for the exercise or defense of a legal claim. Health data may only be processed with the data subject’s explicit written consent.

In case of any doubt or questions in regards of the Hungarian data processing regulation, do not hesitate to contact our professional colleagues.

Phasing Out of the AVDH Authentication Service – Key Considerations for Businesses

2025-11-18
Phasing Out of the AVDH Authentication Service – Key Considerations for Businesses

As of 1 November 2025, the service of authentication of documents based on electronic identification (commonly known as AVDH) was discontinued.
This service was originally introduced by Act CCXXII of 2015 on Electronic Administration (hereinafter: the “Electronic Administration Act”), which also made electronic administration mandatory for economic operators. However, Act CIII of 2023 (hereinafter: the “Dáptv.”) initiated the gradual phasing-out of the AVDH service. Pursuant to Section 119 (2) of the Dáptv., private individuals have been prohibited from using the service since 1 January 2025, while economic operators were permitted to use it only until 31 October 2025.

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The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

2025-11-18
The Use of Artificial Intelligence in Legal Matters – Opportunities and Risks

Artificial intelligence (AI), and in particular generative models, have undergone explosive development in recent years. An increasing number of individuals rely on these systems for various informational, analytical, or even legal questions. There is no doubt that AI tools can be extremely useful: they provide rapid responses, are capable of processing vast amounts of data, and often offer easily comprehensible explanations.

At the same time, it is important to recognise that, due to the current functioning and limitations of AI systems, significant risks also arise — including within the legal domain. For this reason, it is advisable to use such tools consciously and with caution, and not to accept their output at face value, particularly where legal questions are concerned.

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What Can Cryptocurrency Traders Expect From the Second Half of 2025?

2025-11-18
What Can Cryptocurrency Traders Expect From the Second Half of 2025?

As of 1 July 2025, the regulation of cryptocurrency investments in Hungary has undergone significant changes.
The amendment came as a surprise even to industry professionals: although it had been known that reforms were planned, no one anticipated the final details of the bill as submitted and subsequently adopted.

In this article, we first present the revised regulatory framework, then provide a brief outlook and outline what investors and traders may expect in light of these changes.

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