- Hungary enforces data localization rules affecting domestic and foreign service providers.
- State and local government bodies and critical sectors must host electronic systems within the EU.
- Processing is limited to the EEA unless allowed by treaty or supervisory approval.
- Foreign firms must appoint a local representative in Hungary.
- Tax law mandates local storage of original accounting documents for quick access by authorities.
- Laws restrict transfer or disclosure of classified, financial, or insurance data without consent.
- Public bodies must make non-personal public data accessible; private entities may need to share data upon request.
- U.S. technology companies face challenges due to Hungary’s localization framework.
- Hosting requirements limit U.S. cloud providers unless they invest in local infrastructure.
- Mandatory local representation and sector-specific restrictions increase compliance burdens.
- Hungary’s rules contribute to regulatory fragmentation in Europe, affecting U.S. competitiveness.
- Restrictive local rules disrupt operational continuity and introduce risks for U.S. firms.
- Hungary’s measures may set a precedent for other governments to impose similar barriers.
Source: itif.org
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
