The Hungarian Competition Authority (GVH) has opened competition supervision proceedings against Duolingo Inc., the U.S.-based provider of online language learning services. The authority suspects that the company’s commercial practices may mislead consumers and place undue pressure on them to switch to its paid offerings.
According to the GVH, Duolingo may be deceiving users in several ways. The watchdog pointed to potentially misleading claims about the effectiveness of its teaching method, including assertions that “after one month of using Duolingo, 9 out of 10 language learners speak the language confidently.” The company is also accused of making unfounded market leadership claims, such as its slogan “Duolingo – The best way to learn a language in the world.”
In addition, the GVH highlighted shortcomings in how the company communicates with consumers in Hungary. The terms of use and information about the functioning of its web and mobile platforms were allegedly not easily accessible in Hungarian. Users were also not clearly or promptly informed about the limitations of the free version of the service, such as daily caps on the number of lessons available.
The authority further noted concerns about Duolingo’s direct marketing practices. It believes the company may be exerting psychological pressure on consumers through frequent, unsolicited messages designed to increase usage and steer users toward the paid subscription model.
Duolingo, whose owl mascot “Duo” is widely recognized, has gained significant popularity in Hungary, with around 380,000 people reportedly using the service daily.
The GVH stressed that the launch of proceedings does not imply that an infringement has already been established. The purpose of the investigation is to determine whether Duolingo’s practices indeed violate Hungarian competition law. The initial timeframe for the proceedings is three months, though this may be extended twice, by up to two months each time, if justified. The authority also emphasized that delays in data provision by the company are not counted toward the statutory deadlines.
