Prohibition of Practices Presenting an Unacceptable Risk

The strictest and earliest-applicable elements of the regulatory framework concern the prohibition of artificial intelligence practices presenting an unacceptable risk. As certain uses are incompatible with the fundamental values of the European Union, the provisions governing these prohibited practices have applied since 2 February 2025.

Strictly prohibited practices include, for example, the use of manipulative or deceptive techniques that target the human subconscious. Such techniques may materially distort human behaviour and thereby cause significant harm. The social scoring of natural persons based on their social behaviour or personal characteristics is likewise prohibited. By introducing these prohibitions after a transition period of only six months, the EU legislature sought to ensure that the most serious risks would be addressed as soon as possible.

Penalties, Legal Liability and General-Purpose AI Models

Although the Regulation will not become fully applicable for several years, the EU legislature established another critical milestone for 2 August 2025, which has a significant impact on the legal liability of market operators.

The Regulation provides that Member States must establish penalties for infringements that are proportionate and dissuasive. Most importantly, the provisions concerning penalties and administrative fines have applied since 2 August 2025. This earlier date of application means that market surveillance authorities may take enforcement action and impose fines on persons who breach provisions that have already become applicable, well before the Regulation applies in its entirety.

The obligations applicable to general-purpose artificial intelligence models are also linked to the 2 August 2025 deadline. These models, which are trained on vast amounts of data and display significant generality, can readily be integrated into other systems. In their case, the exceptionally rapid development and adoption of the technology justified an earlier date of application. In addition, the institutional infrastructure required for effective enforcement must also be established. Accordingly, the provisions relating to notified bodies and governance structures also became applicable on that date.

General Application and Requirements for High-Risk Systems

The principal date of general application of the Regulation is 2 August 2026, from which date most of its provisions will become mandatory. These include the particularly stringent requirements and obligations applicable to high-risk AI systems.

From that date, providers of high-risk systems will be required to operate a quality management system and maintain detailed technical documentation. They must ensure appropriate human oversight, as well as the accuracy and cybersecurity of their systems. From August 2026, the placing on the market or putting into service of such systems will also be subject to strict conformity assessment procedures and the affixing of the CE marking.

By providing a two-year preparation period, the EU legislature sought to ensure legal certainty, avoid excessive disruption to the market and allow economic operators sufficient time to comply with the relatively complex administrative and technical requirements.

Under the rules currently in force, the general rate of personal income tax (PIT) is 15 per cent of the tax base. In everyday language, many people lump the different concepts together and simply call every case in which no tax is deducted from their gross salary a “tax exemption.” From a legal-dogmatic perspective, however, classical tax exemption must be sharply distinguished from tax allowances. While tax-exempt revenues do not form part of the tax base in the first place, the tax system also recognises different rules that result in a reduction of the private individual’s tax: these are tax allowances reducing the consolidated tax base.

A particular characteristic of personal income tax is that these tax allowances and tax exemptions may be claimed only against income falling within the consolidated tax base and the tax thereon, and exclusively up to that amount.

Regulation (EU) 2024/1689 of the European Parliament and of the Council laying down harmonised rules on artificial intelligence represents a landmark step in reconciling innovation with the protection of fundamental rights in the digital sphere. The Regulation’s primary objective is to improve the functioning of the internal market and to promote the uptake of human-centric and trustworthy artificial intelligence (AI) within the European Union. At the same time, the Regulation attaches particular importance to ensuring a high level of protection of health, safety and fundamental rights—including democracy, the rule of law and environmental protection—against the potentially harmful effects of AI systems.

When enforcing overdue monetary claims, the time and cost involved in court litigation often act as a deterrent for the claimant. However, the Hungarian legal system provides a faster alternative that dispenses with the taking of evidence, known as the order for payment procedure (FMH).

This substitute for litigation, a simplified civil non-contentious procedure, is one of the most effective legal tools for enforcing claims, provided that the obligor does not contest the debt on the merits.

The National Assembly has adopted its individual resolutions on the election of the members and officers of the investigation committees, thereby concluding the procedural process of establishing the bodies. Under the decisions, both the Investigation Committee Uncovering the Systemic Crisis of Child Protection and the Investigation Committee Uncovering Those Responsible for the Pardon Scandal have received their final personnel compositions, allowing the elected representatives to immediately begin performing their independent duties as set out in the resolutions.

In our previous article titled “Significant Changes in Consumer Protection in 2026”, we presented the significant changes that the relevant Government Decree will bring to consumer protection this year. In this article, we present in more detail what webshops and consumers can expect in relation to the “online withdrawal function” already outlined there.