01 August 2007

EU - Commission ends Court proceedings against Hungary after amendment of Media Act

The European Commission has withdrawn its pending case at the Court of Justice against Hungary after the latter abolished a provision of its Media Act that prevented cable operators from providing cable TV services to more than one third of the Hungarian population. The provision had limited competition on the markets for cable TV and broadband internet services in Hungary: such a lack of competition typically leads to higher prices, less innovation and slower take-up of these services. The relevant provision of the Hungarian Media Act prevented the consolidation of the cable networks, in breach of the Commission Directive on electronic communications, but this has now been abolished.