The Hungarian competition authority, known as GVH, is conducting a renewed investigation into Nitrogénművek Zrt. for cartel activities, as mandated by the Budapest Metropolitan Court's recent decision. The court confirmed the GVH's original findings regarding the most severe violations, which include price-fixing and market division.

In October 2021, the GVH imposed a record fine of 11 billion forints on the Nitrogénművek group for unlawfully restricting competition in the domestic fertilizer market over several years. While half of the involved parties voluntarily acknowledged their participation in the cartel, Nitrogénművek Zrt. and another entity contested the GVH's ruling in court.

The Budapest Metropolitan Court issued its ruling on October 3, 2024, partially siding with Nitrogénművek Zrt.'s appeal. However, it upheld the GVH's original decision regarding the most serious violations. The court has mandated a renewed investigation to further examine the extent of the price-fixing and market division, as well as the amount of the imposed fine.

The GVH remains firm in its stance supporting the original decision of the Competition Council and has filed a review request with the Curia, which rejected the request on the grounds that the case did not raise any legal questions requiring guidance from a higher court. Consequently, the GVH is proceeding with the renewed investigation into Nitrogénművek Zrt.'s cartel activities as per the court's directive.

Price-fixing and market division agreements, classified as cartels, are considered the most severe forms of competition restriction due to their potential to cause significant social harm. In the case of the fertilizer cartel, the suppression of competitive pricing may have led domestic farmers to face higher prices compared to a scenario with fair competition, thereby causing harm to Hungarian farmers. Given the critical role of fertilizers in agricultural nutrient replenishment, the repercussions of these violations could further escalate costs for producers and potentially harm consumers in the food market.