The European Commission has referred Hungary to the EU's Court of Justice over its taxation on the turnover of telecoms operators. This tax was one element of a “crisis tax” introduced in October 2010 on three major sectors of the economy (retail commerce, telecoms and energy) to improve Hungary's budgetary position. The Commission considers this tax to be illegal, because EU telecoms rules allow sector-specific charges only to cover the specific costs of regulating the sector, and not to generate additional revenue for the central budget.

Increasing the financial burden of telecoms operators could have an impact on consumers’ bills, distort competition and impede investment in a sector expected to drive growth under the Digital Agenda according to the Commission.

The Commission opened infringement proceedings against Hungary concerning the telecoms tax in March 2011. It followed this up in September 2011 with a reasoned opinion formally asking Hungary to abolish the telecoms tax.