The Hungarian Competition Authority (GVH) has initiated a competition supervision procedure against GAL SynergyTech Zrt., a company selling vitamins and dietary supplements, due to suspicions of establishing minimum resale prices for its products. This practice, known as resale price maintenance (RPM), is considered a serious infringement of competition law.

The GVH's investigation was prompted by information suggesting that GAL's pricing practices could have a noticeable impact on trade between EU member states, leading the authority to base its actions on both Hungarian and EU legal grounds. Concurrently with the initiation of the procedure, the GVH conducted unannounced inspections at GAL and three other companies believed to hold relevant information regarding the investigated conduct.

It is important to note that the initiation of this procedure does not imply that GAL has committed a violation. The investigation aims to clarify the facts and substantiate the alleged infringement. The procedure is expected to last six months, with the possibility of two extensions of up to six months each if justified.

The GVH emphasizes that RPM is a significant anti-competitive behavior that restricts price competition among retailers, ultimately leading to higher prices for consumers. The authority is committed to taking firm action against RPM practices and reminds businesses that setting minimum resale prices is prohibited in all cases.