Four competition authority investigations are under way at the same time in the construction industry markets, and the Hungarian Competition Authority (GVH) will examine all reports that may indicate market distortions or possible infringements in the sector, the national competition authority told Hungarian news agency MTI.
They emphasize that fair competition in the construction raw materials market is considered to be of utmost importance, and a special team is dedicated to the examination of the growing number of complaints and reports received from the market.
According to the statement, one of the leading regional players in the gravel market is being investigated on suspicion of abuse of dominant position because the company may have reduced its extraction capacity in order to be able to raise their prices.
Proceedings are still pending against the three most important players in the domestic cement market, also on suspicion of abuse of economic dominance.
The statement points out that the fast track investigation looking into structural problems in the domestic brick market is based on the tools of the competition authority extended by the government specifically with regard to problems in the construction industry. During the special investigation process, the competition authority has conducted surprise raids on domestic brick manufacturers, wholesalers and distributors across the country to track down the route of products from manufacturers to traders to consumers.
The statement also says that the increased attention given to the construction industry is also reflected in the control of mergers; the competition authority recently launched an investigation related to a merger concerning construction works.
Based on preliminary data, it was not possible to assess the impact of the foreign acquisition on the sector currently struggling with fast growing prices.
Csaba Balázs Rigó, President of the Hungarian Competition Authority, emphasizes in the statement that they are using every tool at their disposal to ease the problems of the construction industry. They monitor all feedback, and in the course of the ongoing investigations they focus on identifying and rectifying potential competition issues as fast as possible.