5-million penalty may also be connected to the new obligation relating to digital services

17 April 2018

A new government decree on service providers providing services subject to notification will come into force on 10 May 2018 [410/2017. (XII.15.) Government Decree]. Through the new government decree compliance with the 2016/1148 European Parliament and Council Directive can be achieved.

According to this government decree those Hungarian-seated business organizations which provide services that are subject to notification obligation should make risk analysis and on the basis of this analysis they should introduce security measures in proportion to the risk.

Which services are subject to this obligation?

  1. online marketplace;
  2. online search engine; and
  3. all cloud-based IT services

Those business organizations which are subject to this government decree must register at the National Directorate General for Disaster Management, Ministry of the Interior (NDGDM).

It is highly recommended to take into consideration these regulations because not fulfilling these obligations may even result in a 5-million penalty.

Meanwhile a new allowance has also been introduced: micro-and small sized enterprises are exempted from the new regulations.

Lili Szenkovits |