The Hungarian competition authority, Gazdasági Versenyhivatal (GVH), has fined Bravogroup Holding Vagyonkezelő Kft. nearly 33 million HUF for violating a prohibition on execution by failing to notify the authority of a merger with Mystical Hungary Zrt.

Bravogroup acquired direct negative control over Mystical Hungary on February 27, 2023, without the necessary notification to the GVH. This control allowed Bravogroup to block decisions but not to make independent decisions.

It wasn't until October 2024 that Bravogroup initiated preliminary discussions with the GVH, acknowledging its violation of competition law. The GVH confirmed that the merger did not significantly reduce competition in the market but initiated proceedings against Bravogroup for the violation.

During the proceedings, the GVH established that Bravogroup had indeed violated the prohibition by not reporting its acquisition of control. A total of 582 days elapsed between the acquisition date and the GVH's first notification.

Bravogroup voluntarily disclosed and acknowledged its violation and waived its right to appeal, leading to a significantly reduced fine of 32.6 million HUF.

The GVH emphasizes the importance of notifying any mergers exceeding the thresholds set by competition law, even before execution. Companies are encouraged to voluntarily report mergers post-execution to potentially reduce fines, as seen in this case.

The GVH is also implementing various measures to streamline the merger approval process, aiming to provide certificates within an average of just four days, one of the fastest in Europe.