Throughout 2024, the Hungarian government intensified its legislative attacks targeting independent newsrooms. The Act in question is now under review by the European Court of Justice, but time is of the essence, as the government already prepares further tools to intimidate newsrooms and make their operations even more difficult.

‘Atlatszo.hu (…) is a foreign-subsidized organization with a significant proportion of its annual budget coming from abroad (…)”. Therefore, the Sovereignty Protection Office “launches an individual – comprehensive – investigation into the activities of atlatszo.hu”.

This is from the official letter received this summer by Hungarian non-profit investigative outlet Atlatszo, one of the independent media outlets and civil society organizations targeted by the newly founded Sovereignty Protection Office (SPO). A few weeks later it was revealed – in a freedom of information lawsuit launched by Atlatszo – that the SPO had initiated the collection of private citizens’ data in cooperation with public and state institutions, including the country’s Media and Infocommunications Authority and the Tax and Customs Authority. The SPO had also urged the Hungarian National Bank to monitor all bank transactions in the country, and to use AI to flag “patterns and hidden correlations” “endangering sovereignty”. In the first nine months of its existence, the SPO published a ‘research report’ accusing independent media outlets of spreading ‘pro-war propaganda in the interest of foreign powers’, flagged some international crowdfunding platforms as threats to Hungary’s sovereignty, requested information from EC president Ursula von der Leyen on information provided by and financing made available to Hungarian NGOs, and hired an ex-intelligence officer (whose career started back at the time of communist rule) as the head of its ‘research institute’.

The SPO was set up by Hungary’s Protection of National Sovereignty Act, and started to operate in early 2024. Ostensibly aimed at countering foreign influence on Hungarian elections, the SPO is an arbitrarily appointed body operating without any oversight – as pointed out in a joint statement by independent Hungarian media outlets. (Many of the signatories of the statement are co-operating in Mediaforum, the Hungarian association dedicated to defending independent media outlets and their values.)

The SPO’s activities, which exist outside the regular legal system, so far have a particular – and hostile – focus on independent news media. Representatives of the Office insist that as these independent newsrooms receive funding from international foundations and institutions, they are doing the bidding of foreign powers seeking to destroy Hungary’s current government. In reality, the targeted newsrooms are mostly financed by crowdfunding, subscriptions and/or commercial revenues. Their international funding is fully transparent. They do what independent news outlets do: provide independent news and information for the Hungarian public.

“I have got used to harassment in the past ten years. However, the recent developments: a state institution doing fake investigations, is harassment on a whole new level. The goal is to intimidate journalists and to shut off potential revenue sources by disconcerting supporters. The SPO conflates politics with journalism: as far as the government is concerned, independent media is part of the political opposition, thus a political opponent. It smears the media critical of the government, and the SPO is nothing but a Hungarian state institution doing political propaganda on the taxpayers’ dime,” says Tamas Bodoky, editor-in-chief of Atlatszo.

Indeed, the Act and the SPO’s activities and communications further stigmatize and try to discredit independent media, accusing it of spreading disinformation in the service of foreign interests. They undermine the public’s trust in independent media organizations and the information they provide. They increase the chilling effect already widespread in the Hungarian media and civil sector, aiming to suppress voices that contribute to the presence of a well-informed electorate. They also contribute to the operational difficulties of independent media organizations, eating up human and financial resources. As a consequence of the threat of mass monitoring of transactions, some donors (crowdfunding donors, subscribers and institutions alike) may decide to stay away from funding Hungarian organizations. All together, these activities contribute and will contribute heavily to the further, irreparable erosion of the Hungarian public sphere, which is already characterized by a very low level of trust, shrinking space for quality news and information, and partisan interpretation of events. The democratic watchdog functions of independent news media are at severe risk, including investigations of corruption and monitoring of spending of EU funds.

The European Commission launched an infringement procedure against Hungary for violating EU law under INFR(2024)2001, stating that the Sovereignty Protection Act violates “several provisions of primary and secondary EU law, among others the democratic values of the Union; the principle of democracy and the electoral rights of EU citizens; several fundamental rights enshrined in the EU Charter of Fundamental Rights, such as the right to respect for private and family life, the right to protection of personal data, the freedom of expression and information” and others. After the required communications, the Commission decided to refer the case to the European Court of Justice.

Infringement procedures and subsequent decisions by the European Court of Justice have been effective in the past in similar Hungarian cases (see the fate of the similar NGO law). Unfortunately, the Court’s procedures usually take years, and there is no information to suggest that the Commission has requested an interim measure to stop the application of the law as quickly as possible.

The Hungarian government, on the other hand, prepares to introduce even more severe and arbitrary legal instruments. In just four months since its launch, the SPO’s annual budget increased from the initial EUR 1.1 million to EUR 10.5 million, and according to a government decree, a further law is under preparation. It is to oblige media companies to “make their foreign funding public” (regardless of the fact that there is no independent media that does not operate in full transparency). In case the funding is considered to “serve pro-war propaganda” as defined by the government, the authorities will “return these funds to the donor”.