Wednesday, 24 June 2026
Hungary has adopted Bill No. T/174, introducing amendments to the country’s Public Procurement Act (Act CXLIII of 2015), including changes that broaden the scope of liability for companies participating in public procurement procedures.
Under the new rules, the Public Procurement Disputes Board (PPDB) will be required to assess the conduct of economic operators when determining responsibility and imposing fines for public procurement infringements. The amendment also requires the PPDB to publish guidance on its fining principles and standard fine levels for specific violations.
The changes affect cases involving serious procurement breaches, such as the unlawful omission of a procurement procedure or violations of standstill requirements. Existing legislation allows fines of up to 15 percent of the estimated value of the procurement or the contract value.
According to the legislative justification accompanying the amendment, previous legislation did not explicitly address whether responsibility and sanctions could be imposed on economic operators for breaches of procurement rules, although such liability was not excluded. The amendment seeks to provide a clearer legal framework for assessing responsibility on both sides of a procurement relationship.
The justification refers to Case C-263/19 before the Court of Justice of the European Union, which confirmed that EU law does not prevent the imposition of sanctions on successful tenderers or contracting parties involved in unlawful contract modifications, provided that the principle of proportionality is respected.
Under the revised framework, the PPDB will be expected to examine factors including the nature of the operator’s obligations, whether its conduct contributed to the infringement, and what level of knowledge or diligence could reasonably be expected in the circumstances. The legislative reasoning suggests that companies entering into significant contracts with public-sector entities may be expected to recognise when a procurement procedure should have been conducted.
At the same time, the amendment indicates that sanctions may not be proportionate in cases where a contracting authority fails to carry out a procurement procedure but is not listed in the official register of contracting authorities, potentially limiting the ability of an economic operator to identify the issue.
The legislation distinguishes between contracting authorities and economic operators. While contracting authorities continue to bear broad objective responsibility for compliance, the conduct of economic operators will be assessed against standards of reasonable behaviour in the specific circumstances.
Legal practitioners note that several practical questions remain unresolved, particularly regarding what compliance measures companies will be expected to undertake before entering into contracts with public entities. Greater clarity is expected once the PPDB publishes its fining guidelines and develops a body of case law under the new provisions.
In addition to the changes concerning fines, the legislative package introduces amendments related to procurement transparency, public access and monitoring mechanisms, and an enhanced role for the Integrity Authority. The reforms also include new anti-corruption measures that allow contracting authorities to incorporate proportionate anti-corruption requirements into contract performance, extending compliance obligations beyond the tendering stage.
The amendments are intended to strengthen oversight and accountability within Hungary’s public procurement system, although their practical impact on market participants will depend on future regulatory guidance and enforcement practice.
Source: CMS
