Issue 13 · Nov 2–8, 2026Editions · Glossary · Archive · Method · RSS · HU / ENG

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Glossary › Regulation and law

versenyjog

in English: competition law

basicwidespread

Competition law refers to the rules that prohibit companies from restricting market competition through collusion or abuse of dominance, and under which authorities also review major corporate acquisitions.

In plain terms

Imagine the market as a football match. Competition law is the referee: it does not say who should win, but that no one should win by match-fixing or pushing other teams off the field. It is allowed to grow large, but not to abuse that size.

It focuses on three things most. It bans cartels, meaning competitors discussing prices or dividing the market. It bans abuse of dominance. And it reviews major corporate acquisitions in advance.

In the AI world, this became a hot topic because nearly everything needed for an advanced model—chips, cloud, data, and money—is in the hands of a few giants. A new question is what happens if pricing algorithms or AI agents "coordinate" to drive prices higher.

Different from consumer protection: that protects you directly in a specific purchase, while competition law protects the entire market so you have choices.

How it works

  1. The competition authority (in Hungary, the Hungarian Competition Authority (GVH); at EU level, the European Commission) learns of suspicious situations from complaints, notifications, or its own market monitoring.
  2. It first defines the affected market: exactly what product and area are involved, and who holds how much power there.
  3. It gathers evidence: it requests data, examines emails and contracts, and may even conduct unannounced on-site investigations (dawn raids).
  4. If a violation is found, it can impose fines and mandate changes in behavior; in acquisitions, it can block the deal or attach conditions.
  5. The company can go to court, and victims can claim damages. A company that is the first to reveal a cartel to the authorities and cooperates fully throughout may be exempt from fines under leniency rules.

An everyday example

You open an AI chatbot and see that the same company's model is embedded in your phone, browser, and office software, while setting up another is difficult. Whether this is a convenient service or an unfair exclusion of competitors is examined by authorities under competition law.

Who is affected

everyoneIf competition is weak, you get the same thing, AI services included, at higher prices, lower quality and from a smaller selection.
entrepreneur, executiveAgreed prices with a competitor or a jointly used pricing software can result in heavy fines even if you were unaware that it was prohibited.
developerIf you build a pricing algorithm or a buying, negotiating agent, you must ensure it cannot collude with competitors' systems. Responsibility lies primarily with the company using the system, but those who knowingly facilitate cartels can also be fined. → Code
lawyer, citizenCompetition law determines how much data, computing capacity, and market power required for AI can be concentrated in the hands of a few companies. → Law

A common misconception

MythCompetition law penalizes large companies because monopoly itself is prohibited.
In realityBeing large, or even market-leading, is permitted if achieved through a better product. However, it is forbidden to abuse this power, for example by excluding competitors or forcing customers into unfair terms.

Limits and risks

Similar, but not the same

Related concepts

Broader

economic law, market regulation

Narrower

kartell, abuse of dominant position, merger control, algorithmic collusion

On the edge

consumer protection, Digital Markets Act, gatekeeper, EU AI-rendelet, AI regulation, vendor lock-in

A brief history

The starting point of modern competition law is considered to be the US Sherman Act of 1890, which aimed to break the power of large trusts. In Europe, the 1957 Treaty of Rome made it a fundamental rule of the common market; in Hungary, the Competition Act adopted in 1996 is currently in force.

Where things stand

Competition law has long been an established legal field, but by the end of 2026 it is working in new territory due to AI. Authorities are examining investments between major tech companies and AI developers, concentration in the chip and cloud markets, and algorithmic pricing.

Status: 2026 November

In the news

Appears in 10 Agent Age stories; the curve shows weekly occurrence in the news magazine.

Also known as

versenyjog · competition regulation · antitrust · antitrust law · kartelljog · competition law · antitrust law · antitrust

Sources

This entry was machine-edited and has undergone machine expert review; the “In the news” section updates automatically from Agent Age stories.