The Hungarian Competition Authority (GVH) the fined the country’s five collective management organisations (CMOs) a total of over HUF210 million (€564,000).
In a statement, it says that at the end of 2016 it stipulated that the organisations – Artisjus, the Performers’ Rights Office (EJI), Filmjus, the Hungary Association and MAHASZ – apply a more accurate method when determining the so-called private copy levies – that is the lump sum renumeration included in the price of for example mobile phones, memory cards, hard drives, and every product listed in the Royalty Notice. The associations despite the dynamically changing market, where there is a strong presence of streaming providers too, haven’t monitored closely the changing usage patterns, and their market research were inaccurate and of concern on several points. The distortion of the levy-calculation method may has impaired the interests of the consumers, ultimately paying the levies, and the authorised artists who are beneficiaries.
As a result, the associations collected approximately HUF11.4 billion in indirect fees from consumers in one year (in 2018) based on incomplete and incorrect analyses.
GVH has fined Artisjus HUF167 million, EJI HUF22 million, MAHASZ HUF 16 million, Filmjus HUF 5 million, and Hungart HUF400 thousand for the violation (most of them with installment payment discounts). GVH notes it is important that the sanction of the competition authority does not reduce the royalties received by artists and performers, but charges the rights management organisations’ own operating costs. This amounts to more than 15% of their income, i.e. more than HUF3.3 billion annually from the various payments.
GVH also notes that refunds can be claimed by consumers.